HORIZON PETROLEUM LTD. ANNOUNCES ADDITIONAL CONVERTIBLE DEBENTURE FINANCING

Executive Summary

• Horizon Petroleum announced a private‑placement financing of up to $3 million in secured convertible debentures priced at $1,000 per debenture, with closing expected on or before 15 April 2026.
• Proceeds are earmarked for civil works on the Lachowice 7 gas well, general working capital in Poland and Canada, and repayment of existing liabilities.
• Each debenture unit is convertible into 9,524 common shares at $0.105 per share plus 4,762 warrants exercisable at $0.15 for up to 36 months after closing; interest is 7% per annum, payable semi‑annually in cash or shares.

Key Details

• Offering size: Up to $3,000,000 aggregate principal amount.
• Price per debenture: $1,000 (secured convertible debentures).
• Interest rate: 7% per annum, payable semi‑annually in cash or shares at the Company’s option.
• Maturity: 24 months after closing; interest accrues from issuance date.
• Security ranking: Fourth position behind existing Series 1, Series 2, and Series 3 debentures.
• Conversion terms:
• Each $1,000 principal converts to 9,524 common shares at $0.105 per share and 4,762 warrants.
• Warrants exercisable for one common share at $0.15 up to 36 months post‑closing.
• Use of proceeds:
• Civil works for re‑entry of the Lachowice 7 gas well (Poland).
• General working capital in Poland and Canada.
• Repayment of existing liabilities.
• Insider participation: Certain directors/officers expected to subscribe; transaction qualifies as a related‑party under MI 61‑101 but is exempt from formal valuation/minority approval requirements.
• Regulatory approvals: Subject to TSX Venture Exchange (TSXV) approval and customary closing conditions.
• Finder’s fees/commissions: Up to 7% cash and 7% warrants may be paid.
• Holding period: All securities issued are subject to a statutory four‑month hold period.

Notable Quotes

“We are offering an additional convertible debenture financing given continued investor interest in the Company's European gas strategy and the exciting gas development program at Lachowice in southern Poland. The proceeds will pay for the civil works for the planned re‑entry of the Lachowice 7 gas well, provide working capital for general corporate purposes in Poland and in Canada and to repay existing liabilities.” – Dr. David Winter, CEO