Horizon Petroleum closes second tranche of offering

Executive Summary

• Horizon Petroleum Ltd. has closed a second tranche of its secured convertible debenture unit offering, raising $100,000 in aggregate gross proceeds from a single investor.
• The financing consists of 100 secured convertible debenture units priced at $1,000 per unit, bearing 15% annual interest and maturing 24 months after issuance.
• The debentures are convertible into equity units comprising common shares and warrants, with specific conversion ratios and exercise prices defined, and the proceeds are designated for general corporate purposes.

Key Details

• Transaction Structure: Closed a second tranche of 100 secured convertible debenture units.
• Price and Proceeds: Priced at $1,000 per unit, resulting in aggregate gross proceeds of $100,000.
• Investor Count: One investor subscribed for the financing.
• Interest Terms: 15% per annum, accruing from the issuance date, paid 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: Holders may convert debentures at any time up to maturity.
  • Conversion Ratio: Each $1,000 principal amount converts into:
    • 10,000 common shares (issued at 10 cents per share).
    • 5,000 common share purchase warrants.
  • Warrant Terms: Each warrant is exercisable into one common share at an exercise price of 15 cents.
  • Warrant Expiry: 36 months from the closing of the debentures.
• Finder’s Fees: Paid $7,000 in cash and issued 70,000 finders' warrants.
  • Finder's Warrant Exercise Price: 10 cents per warrant.
  • Finder's Warrant Expiry: December 24, 2027.
• Use of Proceeds: General corporate purposes.
• Hold Period: All securities issued, including those issuable on exercise, are subject to a hold period of four months and one day from the date of the release.
• Regulatory Status: Subject to TSX Venture Exchange acceptance; treated as a loan with bonus warrants by the TSX Venture Exchange.