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Private Placement in Norway

Tickers: PINX:CANIF, XTSX:ZEE
Tags: #Oil&Gas



December 17, 2019 - TheNewswire - Calgary, AB - Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE:ZEN); (TSXV:ZEE); (OSE:ZENA-ME), the international oil & gas production company, is pleased to announce a Private Placement ("Private Placement") on the Merkur Market of the Oslo Stock Exchange.

As noted in the Company's press release earlier today, the Company has successfully raised gross proceeds of NOK 7,700,000 (approximately GBP638,000 or CAD$1,123,430) to subscribe for 35,000,000 common shares of no par value in the capital of the Company ("New Common Shares") at a price of NOK 0.22 per New Common Share (approximately GBP0.02 or CAD$0.03).

Payment and issue of the New Common Shares to complete the Private Placement is expected on or around December 18, 2019, and an update will be provided upon completion. The Private Placement remains subject to approval from the TSX Venture Exchange.

Zenith intends to use the net proceeds of the Private Placement to purchase approximately CAD$500,000 worth of drilling equipment with the remainder to be used for additional general working capital.

The Company will pay, Scandinavian Corporate Services AS, a broker in Norway, approximately CAD$1,280 in fees for a small portion of the Private Placement that was raised by such broker.

As was previously noted, Mr. Andrea Cattaneo, Chief Executive Officer & President of Zenith, has advised the Company that, in relation to the aforementioned Private Placement, he subscribed 8,500,000 common shares of no par value in the capital of the Company. Mr. Cattaneo's subscription makes the Private Placement a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). Upon completion of the Private Placement, Mr. Cattaneo will be directly beneficially interested in a total of 35,334,115 common shares in the capital of the Company, representing 7.8 per cent of the total issued and outstanding common share capital of the Company admitted to trading on the TSX Venture Exchange and Merkur Market of the Oslo Stock Exchange.

Mr. Cattaneo is also indirectly interested in a total of 480,000 common shares, today representing 0.11 per cent of the Company's issued and outstanding common share capital admitted to trading on the TSX Venture Exchange and Merkur Market of the Oslo Stock Exchange.

The Private Placement is exempt from the need to obtain minority shareholder approval and a formal valuation as required by MI 61-101 as Zenith is listed on the TSX Venture Exchange and the fair market value of the common shares purchased by insiders of the Company does not exceed 25% of the Company's market capitalization. No new insiders were created, nor was there any change of control as a result of the Private Placement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Further Information:

Zenith Energy Ltd

Andrea Cattaneo, Chief Executive Officer

Tel: +1 (587) 315 9031

E-mail: info@zenithenergy.ca

Peterhouse Capital - Joint Broker

Tel: + 44 (0) 207 469 0930

Lucy Williams

Charles Goodfellow

Novum Securities Limited - Joint Broker

Tel: + 44 (0) 207 399 9400

Charlie Brook-Partridge

Hugh McAlister

IFC Advisory Limited - Financial PR & IR

Tel: + 44 (0) 203 934 6630

Graham Herring

Zach Cohen

Notes to Editors:

Zenith Energy Ltd. is an international oil and gas production company, listed on the TSX Venture Exchange (TSXV: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 Bors (ZENA:ME) on November 8, 2018. The Merkur Market is a multilateral trading facility owned and operated by the Oslo Bors.

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.

The Company operates the largest onshore oilfield in Azerbaijan by cumulative acreage following the signing of a 25-year REDPSA, (Rehabilitation, Exploration, Development and Production Sharing Agreement), with SOCAR, State Oil Company of the Republic of Azerbaijan, 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.

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