RNS Part 25 Sep 2018 08:06
It is expected that the BD-260 and the 180-ton truck-mounted workover and drilling rig, to be leased from a local drilling company following the completion of a formal tender process, will be in operation concurrently across the Company's field operations in Azerbaijan.
Convertible Loan Facility
The Company has entered into a US$1,500,000 unsecured convertible loan facility (the "Facility") with a consortium of lenders (the "Lenders"). The Facility has a term of 18 months starting from August 30, 2018 and the Company shall pay interest on the outstanding amount of the Facility at the rate of 0% per annum (the "Interest Rate"). The Facility includes an initial immediate advance of US$1,300,000 and a further advance of US$200,000, to be provided at a later time and only at the discretion of the Lenders. The Facility is repayable as follows:
· US$50,000 on October 16, 2018;
· US$100,000 on November 16, 2018; and
· The remaining balance to be paid 18 months after each such advance
Under the terms of the Facility the Company has issued the Lenders with 6,977,988 share purchase warrants (the "Warrants") to subscribe for the equivalent number of common shares of no par value in the share capital of Zenith ("Common Shares") at a price of £0.0505 per Common Share on subscription at any time from December 30, 2018 to February 28, 2020 subject to the articles of the Company and the terms and conditions of the Facility.
The Facility is wholly or partly convertible into Common Shares at the lower of £0.0505 per Common Share and 90% of the lowest daily volume weighted average price on the London Stock Exchange of the Common Shares during the 10 trading days immediately prior to the request for conversion, subject to maximum total shareholding restrictions from each Lender of 9.99% ("Conversion"). The Lenders have the right to request Conversion between December 30, 2018 and the expiry of the Facility.
An application will be made for any Common Shares issued and allotted on exercise of the Warrants or Conversion to be admitted to the standard segment of the Financial Conduct Authority UK Official List and to trading on the Main Market for listed securities of the London Stock Exchange (the "Admission"). The new Common Shares will rank pari passu in all respects with the existing common shares of the Company. An application will also be made for the new Common Shares to be listed on the TSX Venture Exchange.
The Facility agreement includes normal warranties and default clauses.
Andrea Cattaneo, Chief Executive Officer, commented:
"The financing Zenith has secured provides additional capital that will be invested directly into our operations.
The purchase of the BD-260 reflects Zenith's strategy of owning the key equipment required for the long-term development of its asset portfolio. We have been working
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