Continental Focus, International Reach

Zenith Secures Loan for Tunisia Ops

Wednesday, May 26, 2021

Zenith Energy announced that it has entered into a loan agreement with Winance, a Dubai registered single-family office for a total amount of EUR 2.1 million. The Loan Agreement has a duration of six months and does not attract interest.

An upfront arrangement fee, equal to 5 percent of the total drawdown amount, has been paid to the Lender in accordance with the terms of the Loan Agreement. During each month prior to the maturity date, Zenith shall make repayments in accordance with the Loan Agreement, with the first Instalment being payable during the month of July 2021.

100,000,000 new common shares of no par value (the “Reserve Shares”) have been issued to the Lender to be held in a depositary institution designated by the Lender.

Under the terms of the Loan Agreement, Zenith may elect to pay each Instalment either by cash or by utilizing the Reserve Shares, by delivering to the Lender an amount of Reserves Shares equivalent to the quotient obtained by dividing the Instalment Amount by 95 percent of the applicable VWAP (volume weighted average price) for the period of ten business days prior to the due date for each Instalment.

Andrea Cattaneo, Chief Executive Officer of Zenith, commented: “We are very pleased to have concluded our first financing agreement with Winance. This is fruit of the considerable effort made by Zenith’s management team in developing our funding strategy with emphasis towards Arab and Middle Eastern financial markets.

The Company will use the funds obtained from the Loan to commence its near-term operational objectives in Tunisia, as well as providing additional capital for potential acquisitions that the Company may seek to complete. We shall update the market in due course regarding our operational program in Tunisia.

In view of the confidence of the Company’s management in the value creation potential of our possible near-term progress, Zenith shall seek to minimize the use of the Reserve Shares to fulfil the obligations arising from the Loan, and instead maximize the use of the Company’s financial resources generated from oil production.”

Waqas Ibrahim, Director and CFO of Winance, commented: “We are delighted to collaborate with a proficient and esteemed management team such as that of Zenith Energy. Winance, as a strategic partner, shall seek to support Zenith’s growth aspirations for the foreseeable future by utilizing our extensive expertise to innovate and adapt to the evolving funding requirements it may have as it delivers on its ambitious African development campaign.”


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