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CALGARY, AB, March 20, 2026 /CNW/ – Horizon Petroleum Ltd. (the “Company” or “Horizon”) (TSXV: HPL) (FRA: HPM) (Tradegate: HPM) announces a change to the terms of its convertible debenture financing announced on March 17, 2026.
Horizon Petroleum Ltd. Logo (CNW Group/Horizon Petroleum Ltd.)
The convertible debenture financing takes the form of a private placement offering (the “Offering”) in the aggregate principal amount of up to $1,215,000 of secured convertible debentures (each, a “Debenture”) at a price of $1,000 per Debenture. This is an increase from the previous aggregate principal amount of $1,200,000. The Convertible Debenture will be secured and ranking on default in third position behind the currently issued debentures due on May 20, 2026 (“Series 1 Debentures”) and the convertible debentures due on December 19, 2027, December 29, 2027 and February 27, 2028 (“Series 2 Convertible Debentures”).
The Debentures bear interest from the applicable issuance date at 7% per annum until the date that is 24 months following the closing date (the “Maturity Date”). The closing date is anticipated to be March 23, 2026. The principal amount of the Debentures can be convertible into units of the Company (the “Units”) at the option of the holder at any time prior to the close of business on the last business day immediately preceding the Maturity Date, at a conversion price of $0.105 per Unit (the “Conversion Price”), subject to adjustment in certain events. This is an increase from the previous conversion price of $0.10.
Each Unit is comprised of: (i) one common share of the Company (each, a “Common Share”); and (ii) one half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will be exercisable to acquire one Common Share at an exercise price of $0.15 per Common Share, subject to adjustment in certain events, until 36 months from the Debenture closing date.
Certain directors and officers of the Company (collectively, the “Insiders”) are expected to participate in the Offering, and, as such, the Offering constitutes a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) but is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101 by virtue Sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such Insider participation. No special committee was established in connection with the Offering or the participation of the Insiders, and no materially contrary view or abstention was expressed or made by any director of the Company in relation thereto. Further details will be included in a material change report that will be filed by the Company in connection with the completion of the initial closing of the Offering.
