Zenith Energy Ltd Favourable renegotiation of Convertible Loan (4239S)
11 March 2019 - 6:01PM
UK Regulatory
TIDMZEN
RNS Number : 4239S
Zenith Energy Ltd
11 March 2019
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon
publication of this announcement via a regulatory information
service ("RIS"), the inside information contained in this document
is now considered to be in the public domain.
March 11, 2019
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Favourable renegotiation of Convertible Loan Facility
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V:
ZEE; OSE: ZENA-ME) the listed international oil & gas
production company operating the largest onshore oilfield in
Azerbaijan, is pleased to announce that it has successfully
renegotiated the US$1,500,000 convertible loan facility (the
"Facility") announced on September 5, 2018.
As announced on January 7, 2019, the total outstanding liability
in relation to the Facility currently stands at US$1,050,000
(approximately GBP825,000; CAD$1.4 million; NOK 9 million).
The Company has agreed with the consortium of lenders (the
"Lenders") that the terms of the Facility shall be amended to
include the possibility of optional redemptions (the "Optional
Redemption") to be made by the Company in lieu of conversion of the
Facility by the Lenders for set redemption amounts (the "Redemption
Amounts") amortised across the duration of the Facility.
In addition, provided prior notification is given by the Company
to the Lenders regarding its intention to either pay the Optional
Redemption or confirm that the applicable Redemption Amounts may be
converted, conversion of the Redemption Amounts may only be
effected by the Lenders at a fixed conversion price of GBP0.0505
(approximately CAD$0.088; NOK 0.57) (the "Fixed Conversion
Price").
Furthermore, the Company and the Lenders have agreed to extend
the repayment date of the Facility to May 31, 2020.
Andrea Cattaneo, Chief Executive Officer, commented:
"We are very pleased to have obtained a favourable renegotiation
of the Facility, and I take the chance to thank our Lenders for
their support.
The Board of Directors is strongly of the view that the
beginning of the Company's highly prospective well deepening
programme in Azerbaijan will generate many catalysts for the
creation of shareholder value. It has therefore decided to take all
possible steps to avoid unnecessary equity dilution that may
impinge on the appreciation of the Company's market value during
this time."
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of TSXV) accepts
responsibility for the adequacy of this release.
Further Information:
Zenith Energy Ltd
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Optiva Securities - Broker
Christian Dennis
Jonathan Brown
Tel: + 44 (0) 203 981 4179
Allenby Capital Limited - Financial Adviser
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, listed on the TSX Venture Exchange (TSX.V:ZEE) and London
Stock Exchange (LSE:ZEN). In addition, the Company's common share
capital was admitted to trading on the Merkur Market of the Oslo
Børs (ZENA:ME) on November 8, 2018. The Merkur Market is a
multilateral trading facility owned and operated by the Oslo
Børs.
The Company was assigned a medium to long-term issuer credit
rating of "B+ with Positive Outlook" on October 8, 2018 by Arc
Ratings, S.A.
The Company operates the largest onshore oilfield in Azerbaijan
following the signing of a 25-year REDPSA, (Rehabilitation,
Exploration, Development and Production Sharing Agreement), with
SOCAR, State Oil Company of the Azerbaijan Republic, in 2016.
The Company's primary focus is the development of its Azerbaijan
operations by leveraging its technical expertise and financial
resources to maximise low-cost oil production via a systematic
field rehabilitation programme intended to achieve significantly
increased revenue. Zenith also operates, or has working interests
in, a number of natural gas production concessions in Italy. The
Company's Italian operations produce natural gas, condensate and
electricity.
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the onshore
oil & gas sector. The Company's Board of Directors and senior
management team have the experience and technical expertise to
develop the Company successfully.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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