Homerun Resources closes $6-million financing

Executive Summary

• Homerun Resources Inc. has closed a $6 million financing arrangement with institutional investor Sorbie Bornholm LP.
• The transaction involves the issuance of units, shares, and warrants held in escrow, with releases tied to monthly market price benchmarks over a 24-month period.
• The company received $360,000 in corporate finance fees and a $100,000 due diligence deposit, both payable via the issuance of additional units.

Key Details

• Aggregate Proceeds: $6,000,000.
• Price Per Unit: $1.00 CAD.
• Investor: Sorbie Bornholm LP (arm's-length institutional investor).
• Escrow Structure:
  • Investor deposited $6 million into a third-party escrow account.
  • Company issued 6,000,000 shares into escrow.
  • Warrants are issued to the investor on each monthly settlement date.
  • Cash and shares are released from escrow monthly over a 24-month period based on the company's market price at each release date.
• Warrant Terms:
  • Initial Warrants: 1,500,000 warrants issued immediately upon closing.
    • Exercise Price: $1.18 CAD.
    • Term: 3 years from issuance.
  • Additional Warrants: Up to 4,960,000 warrants released monthly over 24 months.
    • Exercise Price: 20% premium to the 5-day Volume-Weighted Average Price (VWAP) at the time of each issuance.
    • Term: 3 years from issuance.
• Fees and Expenses:
  • Corporate Finance Fee: $360,000, payable via the issuance of 360,000 units.
  • Due Diligence Deposit: $100,000, payable via the issuance of 100,000 units.
  • Both fees are subject to the same terms and escrow release schedule as the main units.
• Sharing Agreement Mechanics:
  • Economic interest determined in 24 monthly settlement tranches.
  • Benchmark Price: $1.178.
  • Upside: If the settlement price (20-day VWAP prior to settlement) exceeds $1.178, the company receives more than 100% of the monthly settlement due on a pro-rata basis, with no upper limit.
  • Downside: If the settlement price is below $1.178, the company receives less than 100% of the monthly settlement due on a pro-rata basis. No increase in units issued to Sorbie occurs due to price declines.
• Regulatory Compliance:
  • Relied on Listed Issuer Financing Exemption under National Instrument 45-106.
  • Shares and warrants are not subject to resale restrictions.
  • Required to file private placement submission via TMX LINX within 3 business days of receiving monthly settlement notice.
  • Submission must include TSX-V Form 4B, investor settlement notice, news release, and minimum exchange fee.
• Offering Document: Dated December 1, 2025, available on SEDAR+ and the company website.