
Zenith Energy, the listed international energy production and development company, has completed a private placement in Norway and a Debt Settlement.
The Placement has attracted the participation of existing investors, as well three Directors, Mr. Andrea Cattaneo, Mr. Sergey Borowskiy and Mr. Luca Benedetto, raising an aggregate total amount of approximately NOK 11,938,353 (equivalent to approx. £841,000 and US$1,092,000), resulting in the issuance of a total of 62,833,440 new Common Shares ('New Common Shares').
Issue Price
The Placement was completed at price of NOK 0.19, representing a premium to the closing price of the Company's equity securities admitted to trading on the Euronext Growth Oslo on October 25, 2024.
Use of Proceeds
The proceeds of the Placement will be used to provide additional funding in support of the Company's international arbitrations against the Republic of Tunisia, as well as for general working capital purposes.
An application for the new Common Shares to be listed on the standard segment of the FCA Official List and to be admitted for trading on the London Stock Exchange Main Market for listed securities will be made within 12 months of the issue of the new Common Shares.
Debt Settlement
The Company has issued 32,166,560 Common Shares ('Debt Settlement Shares') in settlement of certain debts in lieu of cash payment for a total value of 6,111,646 NOK (equivalent to approx. £430,000 and US$559,000).
The Debt Settlement Shares will rank pari passu in all respects with the existing common shares of the Company.
An application for the Debt Settlement Shares to be listed on the standard segment of the FCA Official List and to be admitted for trading on the London Stock Exchange Main Market for listed securities will be made within 12 months of the issue of the Debt Settlement Shares.
Andrea Cattaneo, Chief Executive Officer, commented:
'We are hopeful that there will be a potential favourable decision in the ICC 1 Arbitration expected to be published prior to the close of the year. Zenith has taken every step to minimise expenditure and direct its financial resources and management attention towards the international arbitration proceedings initiated against the Republic of Tunisia.
The Board has every confidence in the merit of our legal position. The participation in the Placement of three Directors, including myself, is evidence of our unwavering belief in the material opportunity for Zenith and its shareholders to be compensated for the very significant damages caused by the Tunisian authorities.'
Source: Zenith Energy