The latest Investing Matters Podcast episode featuring Alex Schlich, founder and managing director of Yellowstone Advisory, has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksZenith Energy Regulatory News (ZEN)

Share Price Information for Zenith Energy (ZEN)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 0.85
Bid: 0.80
Ask: 0.90
Change: 0.00 (0.00%)
Spread: 0.10 (12.50%)
Open: 0.85
High: 0.85
Low: 0.85
Prev. Close: 0.85
ZEN Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

RNS Alerts are a premium feature

Login to your account

myTerminal is a premium feature

Login to your account

Don't have an account? Click here to register.

Financing Update

Thu, 17th Mar 2022 07:00

RNS Number : 0524F
Zenith Energy Ltd
17 March 2022

March 17, 2022  


("Zenith" or the "Company")

Financing Update

Zenith Energy Ltd. ("Zenith" or the "Company") (LSEZEN; OSE: ZENA), the listed international energy production and development company, is pleased to announce that it has entered into a US$6,000,000 unsecured convertible loan facility (the "Facility") with a consortium of institutional lenders (the"Lenders"), to provide additional funding for the Company's field development operations in Tunisia and potential near-term business development in the Republic of the Congo.


The Facility includes an initial immediate advance of US$2,000,000 (the "Drawdown"). The Company has the right to draw down up to a total capital exposure of US$2,000,000 every 4 months from the Lenders.

Each Drawdown has a repayment term of 15 months, of which the first three months of repayment holiday, and the remaining twelve of equal principal instalments.

Zenith shall pay interest on the outstanding amount of the Facility at the rate of 9% per annum (the "Interest Rate").

Under the terms of the Facility, the Company has issued the Lenders with 92,094,691 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 NOK 0.1458 per Common Share (equivalent to approximately £0.012) for subscription at any time, with a 24-month term from the date of issuance, and subject to the articles of the Company and the terms and conditions of the Facility.

During the term of the Note, the Lenders may, from time to time, elect to convert varying amounts of Principal and Interest of the Facility. Half of each Drawdown may be converted at 130% of the relevant Reference Price, and half at 150% of the relevant Reference Price, the Reference Price being the average of the 15 daily VWAPs, on the Euronext Growth Oslo, preceding each Drawdown. The Lenders have trading restrictions meaning they cannot sell more than 15% of monthly volume for the duration of the Facility.

No conversions will take place for the first 2 months following each relevant drawdown. Conversions are restricted to no more than 30% of each Drawdown for the first 4 months.

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") and the Euronext Growth Oslo. The new Common Shares will rank pari passu in all respects with the existing common shares of the Company.

In accordance with the terms of the Facility, repayment of each Drawdown can be made in cash ("Cash Repayment") for a charge of 2.5% of the relevant Drawdown amount outstanding.

The Facility agreement includes normal warranties and default clauses.

Pledging of shares by CEO as third-party guarantor

The Chief Executive Officer & President of the Company, Mr. Andrea Cattaneo, has agreed to act as a third-party guarantor in support of the Company, in connection with the Facility. On March 16, 2022, Mr. Cattaneo pledged a total of 11,228,022 common shares in the capital of the Company, in which he has a direct beneficial interest.

Andrea Cattaneo, Chief Executive Officer, commented:

"We are pleased to have concluded this finacing to further reinforce our working capital position at a time of great activity on a number of fronts for the Company, both in terms of asset development and potential near-term asset acquisition.

In view of Zenith's upcoming planned sale of oil production in Tunisia, as well as other potential share price catalysts, we shall seek to avoid dilution taking place by repaying the Drawdown by way of cash payments, as well as settling other outstanding loan facilities in such a way that Zenith can continue to maximise the benefits of the current energy pricing climate to significantly improve its balance sheet.

I look forward to reporting on our progress in due course."

Further Information:

Zenith Energy Ltd Andrea Cattaneo, Chief Executive Officer


Tel: +1 (587) 315 9031


Allenby Capital Limited - Financial Adviser Nick Harriss

Nick Athanas


Tel: + 44 (0) 203 328 5656

Alternative Resource Capital - Broker Alex Wood

Keith Dowsing


Tel: +44 (0) 207 186 9004

Tel: + 44 (0) 207 186 9005


Notes to Editors:                     

Zenith Energy Ltd. is an international oil and gas production company, listed on the London Stock Exchange (LSE:ZEN) and the Euronext Growth Market of the Oslo Stock Exchange (OSE:ZENA).

Zenith's development strategy is to identify and rapidly complete value-accretive hydrocarbon production opportunities in the oil & gas sector, specifically in Africa.

Follow us on LinkedIn:

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.




Details of the person discharging managerial responsibilities / person closely associated



Andrea Cattaneo


Reason for the notification



Chief Executive Officer 


Initial notification/Amendment

Initial Notification


Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor



Zenith Energy Ltd.





Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted


Description of the financial instrument, type of instrument

Common Shares


Identification code



Nature of the transaction

Pledging of common shares, in the capacity of third-party guarantor, as collateral for convertible loan facility signed by the Company on March 16, 2022.


Price(s) and volumes(s)






Aggregated information



Aggregated volume



Aggregated price



Date of the transaction(s)

March 16, 2022


Place of the transaction

Off Market






This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Date   Source Headline
27th Jul 20224:41 pmRNSPayment of multi-currency bond coupon
14th Jul 20226:00 pmRNSInvestor Call – August 23, 2022
13th Jul 20221:00 pmRNSReactivation of Sant’Andrea concession in Italy
24th Jun 20229:50 amRNSOperational update, Robbana concession
14th Jun 20221:14 pmRNSUpdate on Electricity Production

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.