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Prairie Provident Resources Inc T.PPR

Alternate Symbol(s):  PRPRF

Prairie Provident Resources Inc. is a Canada-based company engaged in the exploration and development of oil and natural gas properties in Alberta, including a position in the emerging Basal Quartz trend in the Michichi area of Central Alberta. The Company has 167,869 net acres in its Michichi core area with approximately 40 Basal Quartz potential drilling opportunities targeting light/medium oil. Its core areas also include Princess. The Company's subsidiaries include Prairie Provident Resources Canada Ltd., Lone Pine Resources Inc., Lone Pine Resources (Holdings) Inc., Arsenal Energy USA Inc. and Arsenal Energy Holding Ltd.


TSX:PPR - Post by User

Post by maramos98on Oct 16, 2021 12:56pm
373 Views
Post# 34013524

$0.0192 Warrants

$0.0192 Warrants
From 2020 Annual report :
The 34,292,360 New Warrants issued in December 2020 (representing 19.9% of the total number of Common Shares then outstanding) are each exercisable for one Common Share at an exercise price of $0.0192 per share (subject to adjustment in certain circumstances) until December 21, 2028; provided that the holder cannot exercise any New Warrants that would result in the holder, together with its affiliates and any person with whom the holder acts jointly or in concert, having legal and/or beneficial ownership of, or exercising control or direction over, more than 19.9% of the number of Common Shares (calculated on a non-diluted basis) outstanding at the time. The New Warrants can also be exercised on a cashless basis, without payment of the exercise price, for such lesser number of Common Shares as are equal in value to the in-the-money value of the New Warrants being exercised (based on the difference between the five-day volume weighted average trading price of the Common Shares and the exercise price).
 
On March 22nd (2021) the company announces the cancellation of 44,711,330 common shares managed by Goldman Sachs Asset Management LP for nominal consideration

PPR issued warrants as part of debt refinancing (benefiting from lower interest rates and relaxed debt covenants).  The warrant issue was offset by the cancellation of the Goldman Sachs shares.  In combination, the result is still a reduction in outstanding shares by approximately 10 million. In addition, the cashless warrant exercise option, can result in reduced future dilution from warrants...In my view, net result is positive....


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