SCHEDULE: Investment Group Reduces Stake in Houston American Energy, Files Exit Disclosure

A group of investors, including 3i, LP and Tumim Stone Capital LLC, have significantly reduced their beneficial ownership in Houston American Energy Corp., filing an exit statement after disposing of shares acquired in a recent offering.

Summary

• 3i, LP, Tumim Stone Capital LLC, 3i Management LLC, and Maier Joshua Tarlow (collectively, the "Reporting Persons") have filed a Schedule 13G for Houston American Energy Corp.
• The filing indicates that the Reporting Persons have significantly reduced their beneficial ownership in the company, with this filing serving as an exit statement for them.
• As of the filing date, 3i, LP beneficially owns 497,690 shares, representing 1.5% of the Common Stock, primarily from a senior secured convertible note in the principal aggregate amount of approximately $5.4 million.
• Tumim Stone Capital LLC beneficially owns 156,000 shares, representing 0.0% (less than 1%) of the Common Stock.
• 3i Management LLC and Maier Joshua Tarlow each beneficially own 653,690 shares, representing 1.9% of the Common Stock, which includes the holdings of 3i, LP and Tumim Stone Capital LLC.
• The beneficial ownership percentages are based on 33,686,417 shares of Common Stock outstanding, as disclosed in a Schedule 13D filed on July 9, 2025.
• The Reporting Persons initially held 9.99% of the outstanding shares following a registered direct offering on June 20, 2025, but have since disposed of all shares acquired through that offering.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership changes and an exit filing, providing no explicit positive or negative operational or financial news about the company itself. The exit filing could be viewed with slight negativity by some investors, but it is primarily a procedural disclosure.

Negatives

• The "exit filing" status indicates that the reporting persons have significantly reduced their stake, which could be interpreted by the market as a lack of long-term conviction from these investors.

Risks

• The conversion of the senior secured convertible note held by 3i, LP is subject to a "Blocker," which could impact the timing or extent of share issuance.

Future Outlook

NA

Industry Context

This filing reflects a change in institutional ownership for Houston American Energy Corp., an oil and gas exploration and production company. Such changes are common in the energy sector, which is subject to fluctuating commodity prices and investor sentiment. The exit of a significant holder could signal a shift in investor strategy or a re-evaluation of the company's prospects by that specific investor group.

Comparison to Industry Standards

• This is a standard Schedule 13G filing, which is a regulatory requirement for investors whose beneficial ownership falls below certain thresholds or changes significantly.
• The specific percentages and the "exit filing" status are unique to this particular investor group and company, and cannot be directly compared to industry-wide benchmarks without more context on the company's performance or the investors' broader portfolio strategies.
• No specific comparable companies, projects, or results are mentioned in the document for direct comparison.

Stakeholder Impact

• Shareholders: The exit of a significant investor group could lead to increased selling pressure or a perception of reduced institutional confidence.
• Creditors: The senior secured convertible note held by 3i, LP represents a debt instrument that can convert to equity, impacting the capital structure.

Next Steps

• The Reporting Persons have completed their disposition of shares acquired in the June 20, 2025 offering, making this an exit filing for them.

Key Dates

Keywords

Houston American Energy Corp., HUSA, Schedule 13G, beneficial ownership, exit filing, convertible note, registered direct offering, 3i LP, Tumim Stone Capital, Maier Joshua Tarlow