Houston Natural Resources Corp (HNRC)

[penny2017investor]

"The cash required at closing can be reduced by $15 million payable through a promissory note to Sellers, and up to another $20 million through issuance of preferred units in OpCo, which convert into shares of the HNRA's proposed new Class B common stock in 2 years, at a conversion rate based on the HNRA stock price at the time. Within one year thereafter, the Class B common stock may be converted into the proposed Class A common stock. At a minimum, HNRA must pay the Sellers $33 million in cash at closing.

In addition, in connection with the reduction of the purchase price due at closing, Target transferred a 10% overriding royalty interest in oil, gas and minerals in, under and produced from each lease of Target (the "ORR Interest") to an affiliate that will not be purchased by HNRA. Then, in connection with the A&R MIPA, HNRA will be granted a 12-month option to purchase the ORR Interest for $30 million.

On August 28th HNRA signed a commitment letter with First International Bank & Trust (FIBT) for a senior secured term loan in the amount of $28 million to fund a portion of the purchase price, subject to a number of conditions set forth in the letter. "

Lmao!!! Scamming frank is at it again!