HORIZON PETROLEUM LTD. CLOSES CONVERTIBLE DEBENTURE UNIT OFFERING

Executive Summary

• Horizon Petroleum closed a secured convertible debenture unit offering for gross proceeds of $200,000 at $1,000 per unit.
• The debentures carry 15% annual interest, mature 24 months after closing, and are second‑position secured behind existing $720,000 senior debentures.
• Each unit is convertible into 10,000 common shares at $0.10 each plus 5,000 warrants exercisable at $0.15 per share for up to 36 months; proceeds will be used for general corporate purposes.

Key Details

• Offering Size: 200 units × $1,000 = $200,000 gross proceeds.
• Investor Participation: Single investor subscribed for the entire offering.
• Interest Rate & Maturity: 15% per annum; maturity date is 24 months after closing, with interest paid annually in arrears.
• Security Position: Second‑position secured behind $720,000 of May 2025 debentures (due May 20, 2026).
• Conversion Terms:
• At any time up to maturity, each $1,000 principal may be converted into:
  • 10,000 common shares at $0.10 per share, and
  • 5,000 warrants, each warrant exercisable for one common share at $0.15, valid for 36 months from closing.
• Finder’s Fees: Cash payment of $14,000 plus 140,000 finder warrants (exercise price $0.10; expiry Feb 28, 2027).
• Use of Proceeds: General corporate purposes.
• Holding Period: All securities issued are subject to a hold period expiring four months and one day from the release date.
• Regulatory Conditions: Offering pending TSX Venture Exchange acceptance; treated as a loan with bonus warrants by the exchange.

Notable Quotes

(No executive quotes were included in the release.)