Horizon Petroleum arranges $200,000 debenture financing

Executive Summary

• Horizon Petroleum Ltd. has launched a private placement offering of secured convertible debentures with an aggregate principal amount of $200,000.
• The debentures are priced at $1,000 each, bear 15% annual interest, and are convertible into company units at a price of 10 cents per unit.
• Each unit consists of 10,000 common shares and 5,000 common share purchase warrants exercisable at 15 cents per share.

Key Details

• Instrument: Secured convertible debentures.
• Aggregate Principal Amount: $200,000.
• Price per Debenture: $1,000.
• Security Position: Second position secured, subordinate to $720,000 of debentures issued on May 20, 2025 (due May 20, 2026).
• Interest Rate: 15% per annum, accruing from the issuance date until 24 months following the closing date.
• Closing Date: Anticipated shortly; subject to TSX Venture Exchange approval and customary conditions.
• Conversion Terms:
  • Convertible into units at the holder's option prior to the business day preceding the maturity date.
  • Conversion Price: 10 cents per unit (subject to adjustment).
• Unit Composition:
  • 10,000 common shares.
  • 5,000 common share purchase warrants.
• Warrant Terms:
  • Exercise Price: 15 cents per common share (subject to adjustment).
  • Expiration: 36 months from the debenture closing date.
• Finders' Fees: Up to 7% in cash and 7% in warrants.
• Hold Period: All securities subject to a statutory four-month hold period.

Notable Quotes

• None provided in the text.