TIDMZEN

RNS Number : 4197V

Zenith Energy Ltd

30 January 2017

ZENITH FURTHER REDUCES DEBT

Calgary, Alberta - January 30, 2017 - Zenith Energy Ltd. ("Zenith" or the "Company"), LSE: ZEN, TSX.V: ZEE reports that, at the request of its bondholders, the Company has completed a further conversion of Convertible Notes (the "Convertible Notes") denominated in CHF (Swiss Franc), issuing an amount of 3,700, 000 ( three million seven hundred thousand) Common Shares (the "Common Shares") of Zenith with an aggregate value of CDN$ 407,000 (approximately GBP247,000).

The terms of this conversion were comprehensively outlined in the Prospectus issued by the Company on 11 January 2017, stating that the conversion mechanism requires a conversion price of CDN$ 0.11 (GBP0.0677).

The Convertible Notes were originally issued in December 2011 for an amount of CHF 1,080,000 with an interest rate of 9% per annum. The outstanding amount after this conversion is reduced to CHF 253,644.00, which is the equivalent of approximately CDN$ 332,500 (GBP201,832).

It should be noted, based on the most recent quarterly unaudited financial statements filed on SEDAR, that the Company's financial debt is approximately 2% of shareholders' equity.

Andrea Cattaneo, CEO of Zenith, commented:

"It is well known that the demise of many junior oil companies is chiefly the result of imprudent debt undertakings. The Board of Directors recognizes this risk and is therefore pleased by the decision of the bondholder to convert its convertible notes at this time. It also makes sense to issue these shares as soon as possible following the Company's IPO.

Further details on the conversion of these convertible notes will be available in the third quarter interim financial statements and management discussion and analysis for the period ending 31 December 2016. Being a Canadian issuer the Company publishes these documents quarterly, and in Zenith's case, publication is anticipated to take place a month from now."

About Zenith Energy Ltd.

Zenith Energy Ltd. is an international oil & gas production company, incorporated in Canada, listed on the London Stock Exchange (ZEN) and the Toronto Stock Exchange Venture (ZEE).

The main focus of the Company is the acquisition of large onshore oil & gas fields in countries that offer strong asset protection and a business atmosphere conducive to stable and profitable production activities.

Zenith operates the largest onshore oilfield of Azerbaijan through its fully owned subsidiary, has oil fields in Argentina and significant gas producing assets in Italy. The Company's Italian operations also include the production of electricity and condensate.

For further information, please contact:

   José Ramón López-Portillo                                            Andrea Cattaneo 
   Chairman of the Board                                                  CEO & President

Email: info@zenithenergy.ca

Telephone: +1 (587) 315 9031

   Telefax:       +1 (403) 775 4474

This information is provided by RNS

The company news service from the London Stock Exchange

END

CONLIFSILLIIVID

(END) Dow Jones Newswires

January 30, 2017 02:01 ET (07:01 GMT)

Zenith Energy (LSE:ZEN)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Zenith Energy Charts.
Zenith Energy (LSE:ZEN)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Zenith Energy Charts.