HORIZON PETROLEUM LTD. ANNOUNCES CONVERTIBLE DEBENTURE FINANCING

Executive Summary

• Horizon Petroleum Ltd. announced a private placement of $200,000 aggregate principal amount of secured convertible debentures priced at $1,000 each.
• The debentures bear 15% annual interest and are convertible into units (10,000 common shares + 5,000 warrants per unit) at $0.10 per unit, with warrants exercisable at $0.15 per share for up to 36 months.
• Closing is pending TSXV approval; the offering includes up‑to‑7% cash and 7% warrant finder’s fees and a four‑month statutory hold period on the securities.

Key Details

• Offering Size: $200,000 principal amount of secured convertible debentures.
• Price per Debenture: $1,000 (aggregate principal = 200 debentures).
• Security Position: Second‑position secured behind existing $720,000 May 2025 debentures due May 20 2026.
• Interest Rate: 15% per annum from issuance date until 24 months after closing (“Maturity Date”).
• Conversion Terms:
• Convertible at holder’s option any time prior to the business day before the Maturity Date.
• Conversion price: $0.10 per Unit.
• Each Unit = 10,000 common shares + 5,000 common‑share purchase warrants.
• Warrant Terms:
• Exercise price: $0.15 per common share.
• exercisable for up to 36 months from the debenture closing date.
• Closing Conditions: Subject to TSXV approval and customary closing conditions; securities subject to a four‑month statutory hold period.
• Finder’s Fees / Commissions: Up to 7% of the offering amount payable in cash and an additional 7% payable in warrants.
• Use of Proceeds (implied): To finance development of Horizon’s Polish gas assets, including the Lachowice field (forward‑looking statement).

Notable Quotes

(No direct quotes were provided in the release.)