(Alliance News) - Zenith Energy Ltd on Wednesday said it intends to delist from the TSX Venture Exchange, adding that it has fully repaid its largest outstanding loan facility.
The Canadian oil & gas company said that following its listing on the Main Market of the London Stock Exchange and the admission of its entire share capital to the Merkur Market of the Oslo Stock Exchange, its investor base has moved towards the UK and Norway. Meanwhile, investor support in the Canadian market has become "limited".
Zenith said that over the last three months, the average volume of shares traded on the TSX Venture Exchange were around 113,000 shares compared to 3.5 million shares on the Oslo Stock Exchange and 3.6 million on the London Stock Exchange. It added that the cancellation of its listing on the Canadian market will result in lower administrative costs, greater operational efficiency and management time savings.
"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 Venture Exchange as a way to achieve meaningful cost savings for Zenith," said Chief Executive Andrea Cattaneo.
The company said it expects the delisting process to complete in May.
Separately, Zenith said it has fully repaid its USD1.5 million loan facility. In September, the company said it entered into negotiations to settle a USD2.1 million liability at a "significant discount". On Wednesday, Zenith confirmed that it has settled the facility for a total amount of USD1.0 million, representing a reduction of USD1.1 million.
Zenith stock closed 6.3% lower at 0.75 pence each on Wednesday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Zenith Energy (ZEN)