Business
Horizon Announces Reinstatement of Trading and Corporate Update
Calgary, Alberta--(Newsfile Corp. - August 12, 2022) - Horizon Petroleum Ltd. (TSXV: HPL.H) ("...
About this update from Horizon Petroleum Ltd.
[{"type":"text","content":"Horizon Announces Reinstatement of Trading and Corporate UpdateCalgary, 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 date...