Calgary, Alberta / TheNewswire / January 30, 2017 – Zenith Energy Ltd. (“Zenith” or the “Company”) is pleased to announce that, as a result of market demand, the Company has entered into an agreement to proceed with a brokered private placement (the “Private Placement”) to raise gross proceeds of GBP 855,000 (approximately CAD$ 1,408,000) through the issue of nine million (9,000,000) new common shares of the Company (“New Common Shares”) at a price of GBP 0.095 (approximately CAD$ 0.1565) per share.

In addition to the New Common Shares, under the Private Placement each subscriber will receive one warrant (the “Warrant”) for every New Common Share purchased. Each Warrant shall entitle the Warrant holder to subscribe for new Common Shares in the Company at a price of GBP 0.15 per common share (approximately CAD$ 0.247), exercisable at any time until 1 February 2019.  

 

The Private Placement follows the successful dual listing of the company on the Main Market of the London Stock Exchange on 11 January 2017 when the Company raised GBP 2,332,550 before expenses via the issue of 33,322,143 Common Shares. The proceeds of the Private Placement will be used to accelerate the Company’s field rehabilitation activities in Azerbaijan and increase the number of well workovers scheduled for completion by 31 March 2018.

 

The New Common Shares will comprise approximately 8.088% (eight point zero eighty-eight per cent) of the Company’s enlarged issued share capital, and are anticipated to be issued as depository interests in CREST in the United Kingdom.  Application will be made for the New Common Shares to be admitted to the standard segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange (the "Admission").  It is expected that Admission will become effective and unconditional dealings in the New Common Shares will commence on or around 8.00am 2 February 2017.

 

Following Admission, the Company's issued share capital will comprise 111,264,867 common shares with one voting right per share. No shares are held in Treasury. The total number of voting rights in the Company will therefore be 111,264,867.

 

This figure of ‘111,264,867’ common shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

The transaction is subject to the Approval of the TSXV in Canada and of the Main Market of the London Stock Exchange in United Kingdom.

  

Andrea Cattaneo, CEO of Zenith, commented:

 

“The Board of Directors is pleased with the Company’s share price performance and liquidity in the period following Zenith’s successful dual listing on the Main Market of the London Stock Exchange on 11 January 2017. This has validated our confidence in the strengths and advantages of dual listing.  I am pleased that there has been such demand from the market to support the Company’s growth and I am of the view that there remains considerable scope for further Zenith market appreciation.  This capital raising will provide additional funding for the Company’s growth strategy, specifically with regards to well workover programme in Azerbaijan. I look forward to updating the market on Zenith’s progress in the months ahead.”

 

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 TSX Venture Exchange (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 in Azerbaijan through its fully owned subsidiary, has oilfields 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

 

Forward-Looking Statements

 

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.  More particularly and without limitation, this news release contains forward-looking statements and information concerning the completion of the Private Placement and the use of proceeds of the Private Placement. The forward-looking statements and information are based on certain key expectations and assumptions made by Zenith, including the ability to execute its strategy and realize its growth opportunities including its ability to raise financing needed to execute its plans.  Although Zenith believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Zenith can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, Zenith being unable to obtain additional financing or other resources to realize its growth opportunities.  Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Zenith undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

 

This press release is not to be distributed to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.