From my reading of this agreement,the lender has the option to...

From my reading of this agreement,the lender has the option to convert the loan to shares at their discretion anytime prior to the due date of 29/11/25. [The value per share being .042cps:]

Up to 100% of the principal funds plus any accrued and unpaid interest may be convertedinto Horizon shares at the lender's election• The conversion price will be equal to a 25% premium to the 15-day Volume WeightedAverage Price of the Company’s share price at the lower of the date of the signing of theterm sheet, the execution of definitive financing documents or the date of this publicannouncement of the loan facilities, subject to anti-dilution adjustments.• The Company has the right to make early repayments, subject to the issue of options in anumber and value equal to 100% of the prepayment amount. The options will have anexercise price equal to the conversion price and an expiry date of the later of 18 monthsand the maturity date• Horizon is to pay a 1.5% arrangement fee to the lender in respect of the Principal

If all goes as we all hope it does, then by Nov 29th this year the share price of HRZ will be multiples of .042cps.They 'd be mad not to convert in that case. This means,if the AU dollar is around current value, we're looking at 8.25 million AU loan amount being converted into 196428571 HRZ shares.One would hope they don't dump them all at once. And if the loan is paid out early we have to issue options at a price I can't work out yet. OK, HRZ bought some very good assets with the money, but it still looks to be a bit one-sided to me in favour of the lender.Talk about an odds on bet.

db