HNRC GIVES UPDATE ON DIVIDEND POLICY AND SHORT POSITION

Rhea-AI Summary

Houston Natural Resources Corp (OTC: HNRC) announced plans to issue a dividend between July 1 and September 30, 2022, based on its holdings in HNR Acquisition Corp. The dividend could be in cash or shares, valued at $3,593,750 if shares are priced at $10, up to $7,187,500 at $20 per share. The company is experiencing a concerning naked short position averaging 57% daily on the OTC markets. HNRC aims to sponsor additional special purpose acquisition corporations (SPACs) this fiscal year to provide further dividends.

Positive

• Proposed dividend distribution could reach $7,187,500 if shares trade at $20.
• Company continues to explore additional SPAC opportunities for future dividends.

Negative

• Naked short position averages 57% daily, indicating potential trading issues.

HOUSTON, March 17, 2022 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) ("HNR or the Company") provided an update on its dividend policy and current short position. 

In order to reward the shareholders, the Company intends to pay a dividend in the third quarter of this year between July 1, 2022 and September 30, 2022. This is in the anticipation of the Company receiving a distribution from its investment in HNR Acquisition Corp ("HNRA") a special purpose acquisition corporation that trades on  the NYSE (https://hnra-nyse.com/). The Company intends to dividend the value of the investment in cash or shares to its shareholders. When the shares or cash are available for distribution the Company will announce the definitive date for shareholders of record to receive the dividend. 

If the Company's current holdings of  359,375 common shares are available for distribution for a dividend @ $10 per share, then the value of the distribution in cash or shares would be $3,593,750 at $0.17c per share. If the shares trade at $12.00 per share, then the distribution in cash or shares would be $4,312,500 or $0.20c per share. If the shares trade at $20.00 per share, then the distribution in cash or shares would be $7,187,500 or $0.33c per share.

The company intends to continue to sponsor additional special purpose acquisition corporations during the fiscal year ending December 31 that would provide for additional dividends. 

The company has also become aware of a naked short position in the trading of its stock on the OTC markets. Some days as much as 80% of the shares being shorted in one day. In the last 10 trading days there has been 1,221,507 shares traded or an average of 122,150 shares per day and 692,538 shares shorted with an average of 69,253 shares shorted per day. There is an average 57% daily naked short position. The information is at the OTC Short Report  https://bit.ly/36sGDvz.  

About Houston Natural Resources Corp

Houston Natural Resources Corp (https://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.

Contact:
Houston Natural Resources Corp
E-mail: frank@hnrcholdings.com  
Houston Texas USA.
Phone: (757) 707-4563

View original content:https://www.prnewswire.com/news-releases/hnrc-gives-update-on-dividend-policy-and-short-position-301505206.html

SOURCE Houston Natural Resources Corp.

FAQ

What is the dividend amount Houston Natural Resources Corp plans to distribute?

Houston Natural Resources Corp plans to distribute a dividend amounting to potentially $3,593,750 to $7,187,500 depending on share price.

When will the dividend for HNRC be paid?

The dividend is set to be paid between July 1 and September 30, 2022.

What is the reason for the naked short position in HNRC's stock?

The naked short position in HNRC's stock has been reported to average 57% daily, suggesting aggressive short-selling practices.

How is the dividend from HNRC calculated?

The dividend from HNRC is based on its investment in HNR Acquisition Corp and could be distributed in cash or shares.

How does the naked short position affect HNRC investors?

The ongoing naked short position may impact share price and liquidity, creating potential risks for HNRC investors.