Horn Petroleum Corporation reports that the private placement announced on May 22, 2012 has closed. The Company sold on a non-brokered private placement basis an aggregate of 18.75 million units at a price of $0.80 per unit for gross proceeds of $15 million. The private placement has received regulatory approval and the securities have been issued to the investors.
Each unit was comprised of one common share and one-half of a share purchase warrant. Each whole warrant is exercisable over a period of two years at a price of $1.20 per share. If Horn Petroleum common shares trade at or above $1.50 for a period of 30 consecutive days, a forced exercise provision will come into effect. A 5% finder's fee is payable in either cash or units on a portion of the private placement.