TIDMZEN
RNS Number : 7267C
Zenith Energy Ltd
24 January 2018
January 24, 2018
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")
Issue of equity to fund field development programme, settlement
of debt for shares and appointment of new joint broker
Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN;
TSX.V: ZEE), the dual listed international oil & gas production
company operating the largest onshore oilfield in Azerbaijan, is
pleased to announce that following the successful private placing
in Canada, as announced on January 10, 2018, (the "Canadian
Placing"), the Company has completed a placing in the UK (the
"Placing") to raise gross proceeds of GBP677,800 (approximately
CAD$1,158,000) by issuing 9,000,000 common shares of no par value
in the capital of the Company (the "New Common Shares") at a price
of GBP0.0742 (approximately CAD$0.1287) per New Common Share.
The New Common Shares were offered by the Company's brokers to
certain investors, principally UK institutions, at the same
sterling equivalent price as the Canadian Placing. The Placing
garnered considerable interest, with the Company receiving offers
for subscription significantly in excess of the maximum 9,000,000
New Common Shares that the Company was able to offer to UK
investors.
The Company intends to use the proceeds of the Placing to
finance its continued investment in its Azerbaijan field operations
and for general working capital.
The New Common Shares will comprise approximately 8.088% of the
Company's enlarged issued share capital at the date of the
admission to trading on London Stock Exchange and are anticipated
to be issued as depository interests in CREST in the United
Kingdom. An application will be made for the New Common Shares to
be admitted to the standard segment of the Financial Conduct
Authority Official List and to trading on the Main Market for
listed securities of the London Stock Exchange ("Admission") as
well as to be listed on the TSX Venture Exchange ("TSXV") in
Canada. It is expected that Admission will become effective on
February 2, 2018.
Under the terms of the Placing, Daniel Stewart & Company Plc
were issued 180,000 warrants in the Company, priced at GBP0.0925,
with an expiry date of two years from Admission.
The Placing is subject to the approval of the TSXV in Canada and
Admission.
Appointment of Joint Broker
The Company is pleased to announce the appointment of Daniel
Stewart & Company Plc as joint corporate broker to the Company
on the London Stock Exchange with immediate effect.
Debt Settlement
The Company announces that it has agreed to issue 1,598,579
common shares (the "Settlement Shares") at a deemed price of
CAD$0.14 to settle a debt of US$180,000 owed by the Company (the
"Share Settlement").
The Settlement Shares, issued pursuant to the Share Settlement,
will be subject to a contractual hold period of one year, inclusive
of a four-month hold period under the rules and regulations of the
TSX Venture Exchange and applicable Canadian securities laws.
The Share Settlement is subject to the final approval of the
TSXV.
An application will be made for the Settlement Shares to be
admitted to the standard segment of the Financial Conduct Authority
Official List and to trading on the Main Market for listed
securities of the London Stock Exchange prior to the expiry of the
hold period, as well as to be listed on the TSXV in Canada.
Total Voting Rights
Following the aforementioned transactions, the Company wishes to
announce, in accordance with the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules, the following
information following Admission:
Class of share Total number Number of Total number
of shares voting rights of voting
per share rights per
class of
share
------------------------ --------------- ---------------- ---------------
Common Shares
in issue and admitted
to trading on
the Main Market
of the London
Stock Exchange 153,200,119 1 153,200,119
------------------------ --------------- ---------------- ---------------
Common shares
in issue and admitted
to trading on
the TSXV 158,798,698 1 158,798,698
------------------------ --------------- ---------------- ---------------
No shares are held in treasury. The above figure for total
number of common shares may be used by shareholders in the Company
as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the Company under the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"The Board of Directors has long stated its desire to attract
institutional investment in the Company to support our long-term
development. This placing is important as it marks the first
significant investment by a number of institutional investors in
Zenith. The level of interest we have received is clear evidence of
the great value of the Zenith story and the exciting journey
ahead."
For further information please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Beaufort Securities Limited - (Joint Broker)
Jon Belliss
Telephone: +44 (0) 207 382 8300
Daniel Stewart & Company Plc - (Joint Broker)
Robert Emmet- Corporate Broking
Nikhil Varghese- Corporate Finance
Telephone: + 44 (0) 207 776 6550
Optiva Securities - (Joint Broker)
Christian Dennis
Telephone: + 44 (0) 203 137 1903
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Telephone: + 44 (0) 203 328 5656
Yellow Jersey (Financial PR/IR)
Tim Thompson
Telephone: +44 (0) 203 735 8825
This information is provided by RNS
The company news service from the London Stock Exchange
END
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