The proposed transaction involves the issuance of 2,994,286 shares at a price of CAD$0.175 each. This move addresses a specific financial backlog that has accumulated since September 2024, a period during which the company prioritized funding the development of the Lachowice gas field. By opting for equity over cash, management aims to align their personal financial interests with those of existing shareholders.
Horizon Petroleum Eyes Debt Swap to Conserve Capital
Calgary-based Horizon Petroleum is moving to settle CAD$524,000 in outstanding debt by issuing nearly 3 million common shares. The plan, which covers deferred management salaries, director fees, and third-party invoices, seeks to preserve cash reserves as the company pushes forward with its natural gas projects in Poland.
The settlement package includes CAD$365,000 in deferred management compensation, CAD$100,000 in director fees, and CAD$59,000 owed to third-party creditors. Because this arrangement involves company insiders, it is classified as a related party transaction under regulatory guidelines. Horizon Petroleum plans to put the measure to a vote at a shareholder meeting scheduled for July 28, 2026, where it will require disinterested approval to proceed. Final completion remains subject to standard regulatory clearance from the TSX Venture Exchange, and all issued shares will be restricted by a four-month and one-day hold period.
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