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Zenith Energy

Zenith Energy Ltd Favourable renegotiation of Convertible Loan

Zenith Energy Ltd (LON:ZEN; TSX.V:ZEE; OSE:ZENA-ME) the listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, has today announced that it has successfully renegotiated the US$1,500,000 convertible loan facility (the “Facility”) announced on September 5, 2018.

As announced on January 7, 2019, the total outstanding liability in relation to the Facility currently stands at US$1,050,000 (approximately £825,000; CAD$1.4 million; NOK 9 million).

The Company has agreed with the consortium of lenders (the “Lenders”) that the terms of the Facility shall be amended to include the possibility of optional redemptions (the “Optional Redemption”) to be made by the Company in lieu of conversion of the Facility by the Lenders for set redemption amounts (the “Redemption Amounts”) amortised across the duration of the Facility.

In addition, provided prior notification is given by the Company to the Lenders regarding its intention to either pay the Optional Redemption or confirm that the applicable Redemption Amounts may be converted, conversion of the Redemption Amounts may only be effected by the Lenders at a fixed conversion price of £0.0505 (approximately CAD$0.088; NOK 0.57) (the “Fixed Conversion Price”).

Furthermore, the Company and the Lenders have agreed to extend the repayment date of the Facility to May 31, 2020.


Andrea Cattaneo, Chief Executive Officer, commented:

“We are very pleased to have obtained a favourable renegotiation of the Facility, and I take the chance to thank our Lenders for their support.

The Board of Directors is strongly of the view that the beginning of the Company’s highly prospective well deepening programme in Azerbaijan will generate many catalysts for the creation of shareholder value. It has therefore decided to take all possible steps to avoid unnecessary equity dilution that may impinge on the appreciation of the Company’s market value during this time.”


Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of TSXV) accepts responsibility for the adequacy of this release.

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