Zenith Energy Ltd - Intention to delist from TSX-V & Debt Reduction
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon publication of this announcement via a regulatory information service ("RIS"), the inside information contained in this document is now considered to be in the public domain.
("Zenith" or the "Company")
Intention to delist from TSX-V & Debt Reduction
· Following the Company's dual listing on the Main Market for listed securities of the
· The Company's average trading volume and liquidity on the TSX-V has become comparatively limited, particularly in the past year. For example, over the preceding three months, Zenith's average volume of shares traded on the TSX-V were approximately 0.113 million Common Shares (1.6%) compared to 3.526 million Common Shares on the Merkur Market (48.9%) and 3.577 million Common Shares on the LSE (49.6%).
· Given the aforementioned, and in light of the current COVID-19 pandemic and low oil price environment, the Company has been reviewing its corporate structure to maximise cost control and, as part of this review, plans to delist from the TSX-V. The benefits of delisting are expected to result in lower administrative costs, greater operational efficiency and management time savings.
It is expected that the process to delist from the TSX-V will be completed during the month of
At least 10 days prior to delisting from the TSX-V, Zenith will provide clear guidance to shareholders on the Canadian register on any applicable actions they will need to take. Zenith expects there will be no impact to the shareholders on the Canadian register and that trading access of their equity positions in Zenith on other markets where the Common Shares are admitted to trading will be available once appropriate actions are taken.
Repayment of Loan Facility for
The amount of the principal, and related accrued interest, of the Loan Facility is represented and accounted as a liability in the audited Annual Financial Report of the Company as of
The Company is pleased to confirm that the liability has been settled in full.
"In view of the low oil price environment, and the impact of the COVID-19 pandemic on financial markets, we are taking every necessary step to maximise the efficiency of our corporate structure.
We view delisting from the TSX-V as a way to achieve meaningful cost savings for Zenith.
For some time, the level of interest for junior oil and gas production companies such as Zenith has significantly declined in the Canadian market. Indeed, the level of trading in the Company's common shares on the TSX-V has been minimal when compared to the
I take the chance to thank the TSX-V and its officers who have always been extremely supportive in assisting Zenith over the years.
We are delighted to have fully settled the Loan Facility of
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Tel: +1 (587) 315 9031
E-mail: [email protected]
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Tel: + 44 (0) 207 399 9400
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Notes to Editors:
The Company was assigned a medium to long-term issuer credit rating of "B+ with Positive Outlook" on
This information is provided by RNS, the news service of the
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Market Cap: £6.7 m
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