Prairie Operating (PROP) said Monday it has started an underwritten public offering of $35 million of common shares.
The company intends to grant the underwriters additional $5.25 million of additional shares as overallotment option.
Prairie also entered an agreement to issue 150,000 shares of new series F convertible preferred stock to an investor for an undisclosed amount. The preferred stock will have an annual dividend rate of 12%.
It added that the holder of series F stock warrants will be entitled to buy additional common shares under certain conditions.
The company plans to use the net proceeds from the sale of common and preferred shares to fund its proposed acquisition of assets from Bayswater Exploration and Production as well as for other corporate purposes, like advancing its drilling program, repayment of debt, or funding other potential acquisitions.
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