HORIZON PETROLEUM LTD. CLOSES AN INITIAL TRANCHE OF CONVERTIBLE DEBENTURE UNIT OFFERING

Executive Summary

• Horizon Petroleum closed an initial tranche of 170 secured convertible debenture units at $1,000 per unit, generating $170,000 in gross proceeds.
• The debentures bear 15% annual interest, mature in 24 months, and are second‑position secured behind existing May 2025 debentures.
• Each unit is convertible into 10,000 common shares at $0.10 plus 5,000 warrants (exercisable at $0.15 for 36 months).

Key Details

• Offering Size: 170 units × $1,000 = $170,000 gross proceeds.
• Investors: Six (6) investors subscribed; no finder’s fees were paid.
• Interest Rate & Maturity: 15% per annum, payable annually in arrears; maturity date is 24 months after closing.
• Security Ranking: Second‑position secured behind $720,000 of May 2025 debentures (due May 20, 2026).
• Conversion Terms:
• Each $1,000 unit may be converted into 10,000 common shares at $0.10 per share and 5,000 warrants.
• Warrants exercisable for up to 36 months from closing at an exercise price of $0.15 per share.
• Use of Proceeds: Payment of annual concession fees to the Polish government and general corporate purposes.
• Holding Period: All securities (including those issuable on conversion/exercise) subject to a lock‑up expiring 4 months + 1 day after issuance.
• Related Party Transaction: Directors and officers subscribed for 125 units under MI 61‑101 exemptions; no special committee was formed, and no material minority dissent was recorded.
• Regulatory Conditions: Closing subject to TSX Venture Exchange approval and other required consents; financing treated as a loan with bonus warrants by the exchange.

Notable Quotes

(No direct quotes were provided in the release.)