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CALGARY,
AB, March 20, 2023 /CNW/ - Horizon Petroleum
Ltd. ("Horizon" or the "Company") (TSXV: HPL.H) is
pleased to announce that the second tranche private placement of
Units announced on January 12, 2023,
("Private Placement") has now closed.
The Company issued 1,143,500 Units at a price of CAD$0.08, for gross proceeds of CAD$91,480.
The Units comprised: (i) one common share in the capital of the
Company ("Common Share"), and (ii) one transferable share
purchase warrant entitling the holder thereof to acquire one
Common Share at a price of CAD$0.16
("Warrant") per share (collectively the "Warrants"). The
rights under the Warrants will last for a period of 12 months
following the closing date.
The Company previously issued 7,850,000 Units at a price of
CAD$0.08, for gross proceeds of
CAD$628,000. The combined placement was for total proceeds of
$719,480.
The Private Placement remains subject to TSX Venture Exchange
final acceptance.
Horizon paid a finder's fee to PI Financial Corp. of
$388 cash and broker warrants to
acquire 8,100 Common Shares at a price of 0.08 per Share for a
period of 12 months from closing. Horizon paid a finder's fee to
St. Peter Investments of 80,000 Units at a price of $0.08 with each unit comprised of one common
share and one share purchase warrant entitling the holder thereof
to acquire one Common Share at a price of 0.16 per Share for a
period of 12 months.
Insider Participation
An Insider participated in the placement for a total of
approximately CAD$5,000. A portion of the Private Placement
constituted a related party transaction within the meaning of TSX
Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 ("MI
61-101") as an insider of the Company subscribed for an aggregate
of 62,500 Units pursuant to the Private Placement. The Company is
relying on the exemptions from the valuation and minority
shareholder approval requirements of MI 61-101 contained in
sections 5.5(b) and 5.7(1)(a) of MI 61- 101, as the fair market
value of the participation in the Private Placement by the insider
does not exceed 25% of the market capitalization of the Company,
as determined in accordance with MI 61-101. The Company did not
file a material change report in respect of the related party
transaction at least 21 days before the closing of the Private
Placement, which the Company deems reasonable in the circumstances
in order to complete the Private Placement in an expeditious
manner.
All securities issued in connection with the Private Placement
will not be able to be traded in Canada, or through the facilities of the TSX
Venture Exchange, for a period of four months and one day from
the date of closing.
The TSX Venture Exchange Inc. has neither approved nor
disapproved the contents of this news release.
Certain information in this press release may contain
forward-looking statements. This information is based on current
expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. The Company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to the Company. Additional information identifying risks
and uncertainties is contained in the Company's filings with the
Canadian securities regulators, which filings are available
at www.sedar.com.
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this press
release.
SOURCE Horizon Petroleum Ltd.