TIDMZEN
RNS Number : 4751K
Zenith Energy Ltd
22 April 2020
April 22, 2020
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.
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Intention to delist from TSX-V & Debt Reduction
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V:
ZEE; OSE: ZENA-ME), the listed international oil & gas
production company focused on pursuing African development
opportunities, announces its intention to delist from the TSX
Venture Exchange ("TSX-V") and confirms the full repayment of its
largest outstanding liability.
Rationale
-- Following the Company's dual listing on the Main Market for
listed securities of the London Stock Exchange ("LSE") in January
2017 and the admission of its entire share capital to the Merkur
Market of the Oslo Stock Exchange ("Merkur Market") in November
2018, the Company has seen its investor base move increasingly
towards the UK and Norway, with limited investor support from the
Canadian market. The Company has found UK and Norwegian investors
to be more receptive to and interested in junior production and
exploration companies, and therefore more suited to support
companies such as Zenith. The Company intends on maintaining such
listings and as such will provide continued trading liquidity of
common shares in the capital of Zenith ("Common Shares") to its
public shareholders.
-- The Company's average trading volume and liquidity on the
TSX-V has become comparatively limited, particularly in the past
year. For example, over the preceding three months, Zenith's
average volume of shares traded on the TSX-V were approximately
0.113 million Common Shares (1.6%) compared to 3.526 million Common
Shares on the Merkur Market (48.9%) and 3.577 million Common Shares
on the LSE (49.6%).
-- Given the aforementioned, and in light of the current
COVID-19 pandemic and low oil price environment, the Company has
been reviewing its corporate structure to maximise cost control
and, as part of this review, plans to delist from the TSX-V. The
benefits of delisting are expected to result in lower
administrative costs, greater operational efficiency and management
time savings.
It is expected that the process to delist from the TSX-V will be
completed during the month of May 2020.
At least 10 days prior to delisting from the TSX-V, Zenith will
provide clear guidance to shareholders on the Canadian register on
any applicable actions they will need to take. Zenith expects there
will be no impact to the shareholders on the Canadian register and
that trading access of their equity positions in Zenith on other
markets where the Common Shares are admitted to trading will be
available once appropriate actions are taken.
Repayment of Loan Facility for US$1,485,000 and accrued
interest
The amount of the principal, and related accrued interest, of
the Loan Facility is represented and accounted as a liability in
the audited Annual Financial Report of the Company as of March 31,
2019, and in the unaudited Q2 Financial Statements as of September
30, 2019, for an aggregate amount of US$2,080,523.
On October 1, 2019, the Company announced that, following
negotiations with the lender, it had successfully agreed to settle
the aforementioned liability for a reduced amount of US$1,000,000,
representing a profit of US$1,080,523.
The Company is pleased to confirm that the liability has been
settled in full.
Andrea Cattaneo, Chief Executive Officer, commented:
"In view of the low oil price environment, and the impact of the
COVID-19 pandemic on financial markets, we are taking every
necessary step to maximise the efficiency of our corporate
structure.
We view delisting from the TSX-V as a way to achieve meaningful
cost savings for Zenith.
For some time, the level of interest for junior oil and gas
production companies such as Zenith has significantly declined in
the Canadian market. Indeed, the level of trading in the Company's
common shares on the TSX-V has been minimal when compared to the
London and Oslo markets.
I take the chance to thank the TSX-V and its officers who have
always been extremely supportive in assisting Zenith over the
years.
We are delighted to have fully settled the Loan Facility of
US$2,080,523 (inclusive of accrued interest) by making full payment
of the revised settlement amount of US$1,000,000. This is an
important milestone in our debt reduction activities as it
constituted the single largest liability on our balance sheet."
Further Information:
Zenith Energy Ltd.
Andrea Cattaneo, Chief Executive Tel: +1 (587) 315
Officer 9031
-----------------------------
E-mail: info@zenithenergy.ca
-----------------------------
Novum Securities Limited - Broker Tel: + 44 (0) 207
399 9400
-----------------------------
Colin Rowbury
-----------------------------
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 9, 2019 by Arc
Ratings, S.A. On November 18, 2019, the Company was assigned a "B+"
with Stable Outlook debt issuer credit rating by Rating-Agentur
Expert RA. Zenith's development strategy is to identify and rapidly
seize value-accretive hydrocarbon production opportunities in the
onshore oil & gas sector, specifically in Africa. 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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