Horizon Petroleum closes $200,000 offering

Executive Summary

• Horizon Petroleum Ltd. has closed a secured convertible debenture unit offering, raising aggregate gross proceeds of $200,000 from a single investor.
• The financing consists of debentures bearing 15% annual interest, convertible into equity units comprising common shares and warrants.
• Proceeds are designated for general corporate purposes, with finders' fees paid in cash and warrants.

Key Details

• Transaction Structure: Closed secured convertible debenture units.
• Price and Proceeds: $1,000 per unit; aggregate gross proceeds of $200,000.
• Investor Count: One investor subscribed.
• Debenture Terms:
  • Interest rate: 15% per annum.
  • Interest payment: Annually in arrears.
  • Maturity: 24 months following the closing date.
  • Security Position: Second position secured, subordinate to $720,000 of debentures issued on May 20, 2025 (due May 20, 2026).
• Conversion Rights:
  • Basis: Each $1,000 principal amount converts into:
    • 10,000 common shares (issued at 10 cents per share).
    • 5,000 common share purchase warrants.
  • Warrant Exercise Price: 15 cents per share.
  • Warrant Expiry: 36 months from closing.
• Finder’s Fees:
  • Cash: $14,000.
  • Warrants: 140,000 finder warrants.
  • Finder Warrant Exercise Price: 10 cents per warrant.
  • Finder Warrant Expiry: February 28, 2027.
• Use of Proceeds: General corporate purposes.
• Hold Period: Four months and one day from the date of the release for all securities issued.
• Regulatory Status: Subject to TSX Venture Exchange acceptance; treated as a loan with bonus warrants by the TSX-V.

Notable Quotes

• None provided in the text.