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Highlights
- Successful Fundraising: Zenith Energy secured approximately £2.31 million via private placements in the UK and Norway, issuing 48.5 million new shares.
- Director Participation: CEO Andrea Cattaneo received shares to settle director loans, showcasing leadership confidence in the company’s outlook.
- Funds Allocation: Proceeds will support international arbitrations and general working capital needs.
Zenith Energy Ltd. (LSE:ZEN; OSE:ZENA; PINK MARKET:ZENAF), an international energy production and development company, announced the successful completion of private placements in the UK and Norway, raising a total of £2.31 million. The financing will support the company’s arbitration efforts and strengthen its working capital.
Details of the Financings
Zenith issued 48,538,042 new common shares, raising gross proceeds of approximately £2.31 million (NOK 32.6 million). The placements involved participation from both new and existing investors, as well as contributions from key directors.
- Norwegian Financing: A total of 31,063,339 shares were issued, raising NOK 21.32 million (£1.51 million). The shares are expected to be listed on the London Stock Exchange’s main market within 12 months.
- UK Financing: A UK institution acquired 16,326,531 shares at £0.049 per share, contributing £800,000 (NOK 11.29 million). These shares are anticipated to begin trading on the London Stock Exchange on January 28, 2025.
Director Loan Settlement
Andrea Cattaneo, Zenith's CEO, was allotted 16,326,531 new shares to settle loans totaling £400,000 made earlier in 2024. This follows an agreement where CFO Luca Benedetto assigned his loan to Cattaneo. The settlement ensures the company maintains financial flexibility while avoiding additional debt.
To facilitate the UK financing, Cattaneo will lend shares to the company via a Share Loan Agreement, enabling timely share issuance without requiring an FCA-approved prospectus.
Use of Funds
Proceeds from the financings will be allocated to support Zenith’s international arbitrations, including enforcement of its ICC-1 Arbitration award against the Republic of Tunisia and ETAP. Additionally, the funds will bolster general working capital, enabling the company to continue pursuing its growth strategy.
