HNRC CONFIRMS SPIN OFF AND IMPLEMENTS POLICY FOR 2023

Rhea-AI Summary

Houston Natural Resources Corp. (OTC: HNRC) has announced the spin-off of its non-energy assets to its subsidiary, Worldwide Diversified Holdings, Inc. (WDHI). Shareholders of record as of December 16, 2022, will receive a stock dividend of WDHI shares, with an anticipated payment date of December 30, 2022. Post-transaction, HNRC will hold over $1.15 per share in appraised assets focusing on energy acquisitions and wastewater treatment. The company aims to pursue energy asset acquisitions and provide dividends in 2023.

Positive

• Spin-off creates focused structure, separating non-energy assets.
• HNRC will maintain over $1.15 per share in appraised assets.
• Plans to acquire income-producing oil and gas properties persist.
• Focus on expanding wastewater treatment facilities and equipment for existing projects.

Negative

• None.

HOUSTON, Dec. 29, 2022 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) ("HNRC or the Company") confirmed today the spin off its non-energy assets to its wholly  subsidiary Worldwide Diversified Holdings, Inc. The dividend will be a stock dividend of common shares of Worldwide Diversified Holdings, Inc ("WDHI").The dividend date for shareholders of record was December 16, 2022 and the anticipated payment date is December 30, 2022 subject to review by FINRA and an effective registration statement. The transaction is proposed to be a non-taxable spin off, meeting the business purpose of separating the company's non-energy assets.

With the completion of the transaction, the company will now have more than $1.15 per share in appraised assets focused on (i) acquisitions of income producing oil and gas properties, (ii) expansion of its wastewater treatment facilities, (iii) additional equipment for the existing 83 oil well rework project and (iv) on completing its listing in the first quarter of next year.

The company intends to continue to pursue its long-term strategy of acquiring energy assets and providing additional dividends to shareholders in 2023.

The company's transfer agent, Equiniti Shareowner Services, has been appointed as the transfer agent for Worldwide Diversified Holdings, Inc and the dividend agent. The company has received the new CUSIP number for WDHI shares, applied to reserve WDHI as the trading symbol and has filed the corporate action with FINRA. WDHI will focus on acquisitions in the technology, telecommunications and software industries.

Shareholders owning HNRC shares through a broker or other nominee will have the WDHI dividend shares credited to their account to reflect the dividend and will not be required to take any action in connection with the transaction. Shareholders who hold their shares in book entry or physical certificates shall receive book entry statements of their WDHI shares. The transaction would not have any impact on the voting and other rights of stockholders and will have no impact on the Company's business operations or any of its outstanding indebtedness.

About Houston Natural Resources Corp

Houston Natural Resources Corp (www.hnrcholdings.com) (OTC:HNRC). The company is a diversified holding company with business operations and investments. The portfolio companies include investments in energy, information technology and healthcare.

FORWARD-LOOKING STATEMENTS:

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties.

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SOURCE Houston Natural Resources Corp

FAQ

What is the significance of HNRC's spin-off of non-energy assets?

The spin-off allows Houston Natural Resources Corp. to concentrate on its energy-related operations while separating its non-energy assets into Worldwide Diversified Holdings, Inc.

When will HNRC shareholders receive their WDHI stock dividend?

The anticipated payment date for HNRC shareholders to receive WDHI stock dividend shares is December 30, 2022.

What are HNRC's plans for 2023 after the spin-off?

HNRC plans to pursue acquisitions of energy assets and continue providing dividends to shareholders in 2023.

How will the spin-off affect HNRC shareholders?

The spin-off will not impact the voting rights or business operations of HNRC, nor will it affect its outstanding indebtedness.