Houston American Energy secures $5M in financing to acquire Texas site

Houston American Energy (HUSA) has secured a Convertible Note from an institutional investor for $5 million. The Company intends to use the proceeds to fund a portion of the acquisition and development of a 25-acre site at the Cedar Port Industrial Park located in Baytown, Texas. The Senior Secured Convertible Note carries an 8% Original Issue Discount for a face amount of approximately $5.4 million and bears 7% interest with a maturity date of July 10, 2026. The Note includes standard rights for the institutional investor, including instalment payments, optional conversion, and certain default provisions. HUSA retains the right to prepay the Note at a premium prior to its maturity. The Note is convertible into common shares of HUSA at a price representing a 10% premium to a look-back price. The look-back price is defined as the lower of: the closing price on the day prior to signing $11.00 on July 10, 2025, or the five-day average closing price prior to signing. HUSA expects to close on the acquisition of the site in July 2025 for approximately $8.5 million. The site will support the foundational buildout of a plastics to fuels development hub, including research and development facilities, storage, roads and other related infrastructure.