Last checked at 30 Jan 2017 07:00
ZENITH FURTHER REDUCES DEBT
Calgary, Alberta - January 30, 2017 - Zenith Energy Ltd. ("Zenith" or the "Company"), LSE: ZEN, TSX.V: ZEE reports that, at the request of its bondholders, the Company has completed a further conversion of Convertible Notes (the "Convertible Notes") denominated in CHF (Swiss Franc), issuing an amount of 3,700, 000 ( three million seven hundred thousand) Common Shares (the "Common Shares") of Zenith with an aggregate value of CDN$ 407,000 (approximately £247,000).
The terms of this conversion were comprehensively outlined in the Prospectus issued by the Company on 11 January 2017, stating that the conversion mechanism requires a conversion price of CDN$ 0.11 (£0.0677).
The Convertible Notes were originally issued in December 2011 for an amount of CHF 1,080,000 with an interest rate of 9% per annum. The outstanding amount after this conversion is reduced to CHF 253,644.00, which is the equivalent of approximately CDN$ 332,500 (£201,832).
It should be noted, based on the most recent quarterly unaudited financial statements filed on SEDAR, that the Company's financial debt is approximately 2% of shareholders' equity.
Andrea Cattaneo, CEO of Zenith, commented:
"It is well known that the demise of many junior oil companies is chiefly the result of imprudent debt undertakings. The Board of Directors recognizes this risk and is therefore pleased by the decision of the bondholder to convert its convertible notes at this time. It also makes sense to issue these shares as soon as possible following the Company's IPO.
Further details on the conversion of these convertible notes will be available in the third quarter interim financial statements and management discussion and analysis for the period ending 31 December 2016. Being a Canadian issuer the Company publishes these documents quarterly, and in Zenith's case, publication is anticipated to take place a month from now."
About Zenith Energy Ltd.
Zenith Energy Ltd. is an international oil & gas production company, incorporated in Canada, listed on the London Stock Exchange (ZEN) and the Toronto Stock Exchange Venture (ZEE).
The main focus of the Company is the acquisition of large onshore oil & gas fields in countries that offer strong asset protection and a business atmosphere conducive to stable and profitable production activities.
Zenith operates the largest onshore oilfield of Azerbaijan through its fully owned subsidiary, has oil fields in Argentina and significant gas producing assets in Italy. The Company's Italian operations also include the production of electricity and condensate.
For further information, please contact:
José Ramón López-Portillo Andrea Cattaneo
Chairman of the Board CEO & President
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Telefax: +1 (403) 775 4474