Horizon Petroleum Announces Update on C$5 Million Financing and Acquisition in Poland
Horizon Petroleum Ltd. (the “Company” or “Horizon”) (TSXV:
HPL) is pleased to announce that it has closed a first tranche of
$956,000 of the private placement (the “Private Placement”),
through the issuance of 19,120,000 common shares (“Common Shares”)
at a price of $0.05 per Common Share. The Common Shares issued are
subject to a hold period expiring on January 27, 2019. Management has
subscribed, directly or indirectly, for 2,500,000 Common Shares for
proceeds of $125,000. Management and Horizon’s Board have further
committed to subscribe for an additional 2,960,000 Common Shares for
subscription proceeds of $148,000, which is expected to close on or
before October 15, 2018. In connection with the Private Placement, the
Company paid, in the aggregate, a cash commission of $54,360, and has
agreed to issue 1,087,200 brokers warrants as an additional portion of
the commission, subject to the approval of the TSX Venture Exchange.
Horizon has entered into a new engagement agreement with Canopus Capital
AG, a Liechtenstein based energy-focused financial advisory firm to
expand our base of European investors. In addition, Horizon is
continuing to work with Gneiss Energy Limited as previously announced to
continue its efforts to raise funds from European investors.
Horizon has signed an amendment to the definitive agreements to acquire
concessions in Poland, extending the long stop date to December 21,
2018. It has further agreed that no funds will be payable upon closing
the acquisition until the licences are successfully transferred to
Horizon. This agreement, combined with the joint venture announced
August 10, 2018, has significantly reduced the Company’s near term
capital requirements.
Horizon continues to work with the Polish authorities on its
pre-qualification process, which is the first step to closing the
acquisition of concessions in Poland by Horizon (the “Acquisition”),
which was previously announced on September 19, 2017. The Company had
expected to close the acquisition in the third quarter of 2018, and now,
Horizon expects to receive pre-qualification and close the acquisition
in the fourth quarter of 2018 or early 2019.
About Horizon Petroleum Ltd.
Calgary-based Horizon is focused on the appraisal and development of
conventional oil & natural gas resources onshore Europe. The Management
and Board of Horizon consist of oil & natural gas professionals with
significant international experience.
Advisories
Note Regarding Forward Looking Statements.
This press release contains forward-looking statements and
forward-looking information (collectively "forward-looking information")
within the meaning of applicable securities laws relating to the
Company’s plans and other aspects of our anticipated future operations ,
the closing and timing of the Acquisition, the closing and timing of
closing of additional financing. Forward-looking information typically
uses words such as "anticipate", "believe", "project", "expect", "goal",
"plan", "intend" or similar words suggesting future outcomes, statements
that actions, events or conditions "may", "would", "could" or "will" be
taken or occur in the future.
The forward-looking information is based on certain key expectations
and assumptions made by Horizon’s management, including expectations and
assumptions concerning Horizon’s ability to raise additional funds in
Europe and regulatory approval in Poland. Although the Company believes
that the expectations and assumptions on which such forward-looking
information is based are reasonable, undue reliance should not be placed
on the forward-looking information because Horizon can give no assurance
that they will prove to be correct. Since forward-looking information
addresses future events and conditions, by its very nature they involve
inherent risks and uncertainties. Horizon’s actual results, performance
or achievement could differ materially from those expressed in, or
implied by, the forward-looking information and, accordingly, no
assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur, or if any of them
do so, what benefits that we will derive therefrom. Management has
included the above summary of assumptions and risks related to
forward-looking information provided in this press release in order to
provide securityholders with a more complete perspective on future
operations and such information may not be appropriate for other
purposes.
Readers are cautioned that the foregoing lists of factors are not
exhaustive. These forward-looking statements are made as of the date of
this press release and we disclaim any intent or obligation to update
publicly any forward-looking information, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.
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