Calgary, Alberta--(Newsfile Corp. - August 12, 2022) - Horizon Petroleum Ltd. (TSXV: HPL.H) ("Horizon" or the "Company") is pleased to announce that further to it's press release dated July 18, 2022 announcing that the revocation of cease trade orders issued to the Company on January 6 and January 16, 2020, the Company's common shares ("Common Shares") will reinstate trading on the NEX board of the TSX Venture Exchange (the "NEX") on August 15, 2022.
The Common Shares were transferred to the NEX on February 16, 2022 as the Company did not meet the listing requirements for a Tier II listed company on the TSX Venture Exchange.
Horizon has made an undertaking to the Alberta Securities Commission to hold an Annual General Meeting of its shareholders within 90 days of July 18, 2022. In addition, the Company has made an undertaking to the TSX Venture Exchange to appoint a Chief Financial Officer no later than 90 days after the reinstatement of trading.
As disclosed in the Company's annual financial statements for the year ended August 31, 2021, a third-party lender (the "Lender") initiated a claim against Horizon in the amount of $188,904.53 on May 17, 2022 (the "Claim"). The Claim is in relation to certain amounts loaned to the Company pursuant to a loan and security agreement (the "Loan Agreement") between Horizon and the Lender dated December 21, 2020 and a corresponding reactivation agreement (the "Reactivation Agreement") between Horizon and the Lender dated December 21, 2020. The Company is pleased to announce that it has executed a settlement agreement (the "Settlement Agreement") with respect to the Claim, effective from July 15, 2022. Pursuant to the terms of the Settlement Agreement the Company agreed to pay $160,000 to the Lender, with such payment to be made in two tranches. The first payment in the amount of $50,000 was paid on August 8, 2022. The second payment in the amount of $110,000 (the "Second Payment") is due on or before November 14, 2022. Pursuant to the terms of the Settlement Agreement, in the event that Horizon is unable to make the Second Payment on or prior to November 14, 2022, the Lender shall be entitled to enter a consent judgment in respect of the Second Payment. Horizon has also terminated the Reactivation Agreement dated December 21, 2020 with the Lender with effect from July 3, 2022.
In the short-term, Horizon intends to work toward recapitalizing the Company. Provided the Company is able to successfully recapitalize, it intends to use the proceeds to pay the Second Payment under the Settlement Agreement, settle other outstanding debts and accounts payable and to progress its business plan of developing a natural gas production company in Europe initially focused on the gas developments in the Bielska-Biala and Cieszyn concessions in Poland. For further details on the Company's prior activities in Poland, please refer to the Company's annual financial statements for the year ended August 31, 2021, and the related Management's Discussion and Analysis.
About Horizon Petroleum Ltd.
Calgary-based Horizon is focused on the appraisal and development of conventional natural gas and oil resources in Europe. The Management and Board of Horizon consist of oil & natural gas professionals with significant international experience and expertise in gas and oil development.
For further information please contact:
Dr. David Winter
President & CEO
+1(403) 619 2957
dawinter@horizon-petroleum.com
Forward-Looking Statements
This press release may contain forward looking statements including those describing Horizon's future plans and ability of Horizon to recapitalize or make the Second Payment as required pursuant to the Settlement Agreement. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors. This news release contains forward-looking statements pertaining, directly or indirectly, to the following: the ability of the Company to make the Second Payment required pursuant to the Settlement Agreement, the ability of the Company to settle outstanding debts and accounts payable, the ability of the Company to successfully recapitalize and the Company's business objectives in Poland.
Although Horizon believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, uncertainties relating to the availability and costs of financing; failure to successfully recapitalize prior to the date for payment of the Second Payment or at all; general economic, market or business conditions; risks associated with the oil & gas industry in Poland and in general; inability to attract and retain key management and personnel, including a Chief Financial Officer, and uncertainties resulting from potential delays or changes in plans with respect to the above.
Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/133645
