Under ASX listing rule 7.1, there is a limit of 15% cap on the...

Under ASX listing rule 7.1, there is a limit of 15% cap on the number of new securities HZN can issue over any 12m period without shareholders approval. I believe the first insto tranche and the SPP come within the 15%. The additional insto tranche falls outside the 15% and hence requires shareholders approval.

HOWEVER, at the general meeting on 28/5, shareholders have approved the following resolutions with the result that the SPP amount should be able to be increased from the $5m to include the first tranch of the insto component or an additional $12m. If my interpretation is correct then HZN management does have the felxibility of increasintg the $5m SPP limit.
This may explain why the SPP closing date was delayed till the COB 28/5 post the general meeting.


"The Company advises that the following resolutions were passed by shareholders at the General
Meeting held in Sydney today:
1. Resolution 1
That the issue by the Company of 119,776,727 fully paid ordinary Horizon Oil Limited
shares to various institutional and sophisticated investors on 17 April 2009 at an issue price
of A$0.10 per share, as described in the Explanatory Memorandum accompanying the
Notice of General Meeting convening the meeting, is subsequently approved and ratified for
all purposes including for the purposes of Listing Rule 7.4.
2. Resolution 2
That the issue by the Company of 65,223,273 fully paid ordinary Horizon Oil Limited
shares to various institutional and sophisticated investors on or about 3 June 2009 at an issue
price of A$0.10 per share, as described in the Explanatory Memorandum accompanying the
Notice of General Meeting convening the meeting, is approved for all purposes including
for the purposes of Listing Rule 7.1."