Would hope management have the corporate intellect to consider...

Would hope management have the corporate intellect to consider ceasing any further increase to debt through 8 % loans. Strategy should be to extinguish the loans.

Have they not just raised $2m through sophisticated investors, maybe a smart action would be to use some to reduce the debt and exit the loans?

On the loans themselves and as per the annual report, they seem to be with: Delta Resource Management Pty Ltd & Investmet Limited.

From what I can determine through an ASIC search, both entities have been placed into liquidation and external administration, based on this and what has been disclosed in the recent annual report ie

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“The Company has executed a loan facility agreement with entities associated with Mr Michael Fotios, a former Director of the Company who resigned on 30 April 2019. The facility is for $2 million and it bears interest of 8% p.a., with an undrawn loan balance of $1,209,764 as at 31 December 2022.

is it reasonable to disclose to the market there is $1.2m undrawn loans where the assumption is that the loan agreement is with delta and Investmet? which are when based on what I can determine are entities both are under winding up or liquidation orders from ASIC ?

Also of interest is that Delta resource mgmt P/L , as per the recent annual report , is HOR’s largest shareholder (6.28%) , additionally Investmet who per the 2021 annual report was in the top 20 – have now dropped out of the top 20 which assumes a sell down .

Another item of interest is as per the Jan 22 prospectus where it states amongst other things “In addition to the above salary and fees provided by the Company, Ms Kate Stoney and Craig Hall are employed by Delta and receive a separate salary from Delta. Delta provides services to the Company as set out in Section 12.5.” Assume now that Delta is under liquidation orders from ASIC, Kate and Craig no longer receive salary from Delta. It is also interesting to start unpack there various relationships that are in play and assume any potential conflicts of interest are being appropriately managed

Overall there are a few things that raise questions in the above for me, i do however see there is potential with this company, it will come down to mgmt capability to progress the strategy and successfully execute it . To date and with a declining share price I am not seeing it

Appreciate any other perspectives on the above