HORIZON PETROLEUM LTD. CLOSES A SECOND TRANCHE OF CONVERTIBLE DEBENTURE UNIT OFFERING

Executive Summary

• Horizon Petroleum closed a second tranche of 100 secured convertible debenture units at $1,000 per unit, raising gross proceeds of $100,000.
• The debentures bear 15% annual interest, mature 24 months after closing, and are convertible into common shares and warrants at specified rates.
• Proceeds will be used for general corporate purposes; finder’s fees of $7,000 cash and 70,000 warrants were paid in connection with the offering.

Key Details

• Offering Size: 100 secured convertible debenture units @ $1,000 each = $100,000 gross proceeds.
• Interest Rate: 15% per annum, payable annually in arrears.
• Maturity: 24 months from closing date; interest accrues until then.
• Security Position: Second‑position secured behind $720,000 of May 2025 debentures (due May 20, 2026).
• Conversion Terms: Each unit may be converted into:
• 10,000 common shares at $0.10 per share, and
• 5,000 common‑share purchase warrants exercisable for 36 months at $0.15 per share.
• Finder’s Compensation: $7,000 cash plus 70,000 finder warrants (exercise price $0.10, expiry Dec 24, 2027).
• Use of Proceeds: General corporate purposes.
• Hold Period: All securities issued are subject to a hold period expiring four months and one day from the date of issuance.
• Regulatory Conditions: Closing subject to TSX Venture Exchange acceptance and other required approvals; financing treated as a loan with bonus warrants by the exchange.

Notable Quotes

(No executive quotes were provided in the release.)