rns out22 Apr 2020 09:03
("Zenith" or the "Company")
Intention to delist from TSX-V & Debt Reduction
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE; OSE: ZENA-ME), the listed international oil & gas production company focused on pursuing African development opportunities, announces its intention to delist from the TSX Venture Exchange ("TSX-V") and confirms the full repayment of its largest outstanding liability.
Rationale
· Following the Company's dual listing on the Main Market for listed securities of the London Stock Exchange ("LSE") in January 2017 and the admission of its entire share capital to the Merkur Market of the Oslo Stock Exchange ("Merkur Market") in November 2018, the Company has seen its investor base move increasingly towards the UK and Norway, with limited investor support from the Canadian market. The Company has found UK and Norwegian investors to be more receptive to and interested in junior production and exploration companies, and therefore more suited to support companies such as Zenith. The Company intends on maintaining such listings and as such will provide continued trading liquidity of common shares in the capital of Zenith ("Common Shares") to its public shareholders.
· The Company's average trading volume and liquidity on the TSX-V has become comparatively limited, particularly in the past year. For example, over the preceding three months, Zenith's average volume of shares traded on the TSX-V were approximately 0.113 million Common Shares (1.6%) compared to 3.526 million Common Shares on the Merkur Market (48.9%) and 3.577 million Common Shares on the LSE (49.6%).
· Given the aforementioned, and in light of the current COVID-19 pandemic and low oil price environment, the Company has been reviewing its corporate structure to maximise cost control and, as part of this review, plans to delist from the TSX-V. The benefits of delisting are expected to result in lower administrative costs, greater operational efficiency and management time savings.
It is expected that the process to delist from the TSX-V will be completed during the month of May 2020.
At least 10 days prior to delisting from the TSX-V, Zenith will provide clear guidance to shareholders on the Canadian register on any applicable actions they will need to take. Zenith expects there will be no impact to the shareholders on the Canadian register and that trading access of their equity positions in Zenith on other markets where the Common Shares are admitted to trading will be available once appropriate actions are taken.
Repayment of Loan Facility for US$1,485,000 and accrued interest
The amount of the principal, and related accrued interest, of the Loan Facility is represented and accounted as a liability in the audited Annual Financial Report of the Company as of March 31, 2019, and in the unaudited Q2 Financial Statements as of September 30, 2019, for an aggregate amount of U
Sign In
Follow the stocks
