Horizon Petroleum Ltd. announced private placement to issue secured convertible debentures in the aggregate principal amount up to a maximum of $3,000,000 on March 27, 2026. The debenture is being issued at a price of $1,000 per Debenture. The closing date is anticipated to be on and before April 15, 2026.
The Debenture bears interest from the applicable issuance date at 7% per annum until the date that is 24 months following the closing date (the “Maturity Date”) with interest paid semi-annually in arrears in cash or in shares at the Company’s option. The Debenture will be secured and ranking on default in fourth position behind the currently issued debentures due on May 20, 2026 (“Series 1 Debentures”), the convertible debentures due on December 19, 2027, December 29, 2027 and February 27, 2028 (“Series 2 Debentures”), and the convertible debentures due on March 25, 2028 (“Series 3 Debentures”).Each holder of a Debenture Unit shall have the right, at its option, at any time up to and including the Maturity Date, to convert any or all of the Debenture Units into equity units (“Equity Units”) on the basis of each CAD 1,000 principal amount for (i) 9,524 common shares of the Corporation issued at CAD 0.105 per Common Share, and (ii) 4,762 Common Share purchase warrants, with each Warrant exercisable until thirty-six months from closing the Debentures, into one Common Share at a price of CAD 0.15. Certain directors and officers of the Company (collectively, the “Insiders”) are expected to participate in the Offering.
Closing and the participation of Insiders in the Offering remains subject to the approval of the TSX Venture exchange (“TSXV”). The Company may pay finders fees or commissions for this transaction of up to 7% in cash and 7% warrants. The closing of the Offering is subject to the satisfaction of customary conditions, including the approval of the TSXV.
All securities issued under the Offering remain subject to a statutory four month hold period.