Issue of equity to fund field development programme and appointment of new joint broker

(TheNewswire)

Calgary, AB / TheNewswire / January 24, 2018 - Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN; TSX.V: ZEE), the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce that following the successful private placing in Canada, as announced on January 10, 2018, (the "Canadian Placing"), the Company has completed a placing in the UK (the "Placing") to raise gross proceeds of GBP677,800 (approximately CAD$1,158,000) by issuing 9,000,000 common shares of no par value in the capital of the Company (the "New Common Shares") at a price of GBP0.0742 (approximately CAD$0.1287) per New Common Share. 

The New Common Shares were offered by the Company's brokers to certain investors, principally UK institutions, at the same sterling equivalent price as the Canadian Placing. The Placing garnered considerable interest, with the Company receiving offers for subscription significantly in excess of the maximum 9,000,000 New Common Shares that the Company was able to offer to UK investors.  

The Company intends to use the proceeds of the Placing to finance its continued investment in its Azerbaijan field operations and for general working capital. 

The New Common Shares will comprise approximately 8.088% of the Company's enlarged issued share capital at the date of the admission to trading on London Stock Exchange and are anticipated to be issued as depository interests in CREST in the United Kingdom. An application will be made for the New Common Shares to be admitted to the standard segment of the Financial Conduct Authority Official List and to trading on the Main Market for listed securities of the London Stock Exchange ("Admission") as well as to be listed on the TSX Venture Exchange ("TSXV") in Canada. It is expected that Admission will become effective on February 2, 2018.

Under the terms of the Placing, Daniel Stewart & Company Plc were issued 180,000 warrants in the Company, priced at GBP0.0925, with an expiry date of two years from Admission. 

The Placing is subject to the approval of the TSXV in Canada and Admission.

  

Appointment of Joint Broker 

The Company is pleased to announce the appointment of Daniel Stewart & Company Plc as joint corporate broker to the Company on the London Stock Exchange with immediate effect.  

Total Voting Rights

Following the aforementioned transactions, the Company wishes to announce, in accordance with the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, the following information following Admission:

-------------------------------------------------------------------------------------------------------------------- |  |  |  |  | |Class of share |Total number|Number of voting|Total number of voting | | |of shares |rights per share|rights per class of share| | | | |  | |------------------------------------------------------------------------------------------------------------------| |Common Shares in issueand admitted to trading |153,200,119 |1 |153,200,119 | |on the Main Market of the London Stock Exchange | | | | |  | | | | |------------------------------------------------------------------------------------------------------------------| |Common shares in issue and admitted to trading on the TSXV|158,798,698 |1 |158,798,698 | --------------------------------------------------------------------------------------------------------------------  

No shares are held in treasury. The above figure for total number of 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 Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

 

Andrea Cattaneo, Chief Executive Officer of Zenith, commented:

"The Board of Directors has long stated its desire to attract institutional investment in the Company to support our long-term development. This placing is important as it marks the first significant investment by a number of institutional investors in Zenith. The level of interest we have received is clear evidence of the great value of the Zenith story and the exciting journey ahead."

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

  

For further information please contact:

Zenith Energy Ltd.  

Andrea Cattaneo

Chief Executive Officer 

Email: [email protected]

Telephone:  +1 (587) 315 9031 

 

Beaufort Securities Limited - (Joint Broker)

Jon Belliss

Telephone: +44 (0) 207 382 8300

 

Daniel Stewart & Company Plc - (Joint Broker)

 

Robert Emmet- Corporate Broking

 

Nikhil Varghese- Corporate Finance 

 

Telephone:   + 44 (0) 207 776 6550

  

Optiva Securities - (Joint Broker)

Christian Dennis

Telephone: + 44 (0) 203 137 1903

 

Allenby Capital Limited - (Financial Adviser)

Nick Harriss

Nick Athanas

Telephone:   + 44 (0) 203 328 5656

 

Yellow Jersey (Financial PR/IR)

Tim Thompson

Telephone: +44 (0) 203 735 8825

   

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