24th Oct 2019 16:34
(Alliance News) - Zenith Energy Ltd on Thursday said it has further reduced its debt, with a specific focus on the elimination of all short-term debt positions.
The energy production and exploration company confirmed that it has repaid the first tranche of its intended settlement of its USD1.5 million loan facility and accrued interest. The move follows negotiations entered into with the lender in mid-September to settle the liability at a significant discount.
At the beginning of October, Zenith said, following negotiations with the lender, it had successfully agreed to settle this liability for USD1.0 million, representing a profit of USD1.1 million.
The Calgary, Canada-headquartered firm also confirmed that it had repaid GBP90,000 in unsecured notes issued on March 25, with accrued interest, for the GBP90,000 face value.
In addition, Zenith said it has received three conversion notices from the consortium of lenders for a USD1.5 million convertible loan note facility, entered into in September last year.
The company explained that conversion has been made in three different tranches during September and October. Some 2.7 million shares were issued at a price of 3.05 pence each, 3.7 million shares were issued at 2.21p each, and 5.1 million shares were issued at 2.21p each.
The total outstanding liability in relation to the convertible loan will now stand at USD420,000, Zenith said, following the completion of the convertible loan facility and the conversion.
Back in March, the company said it had renegotiated the convertible loan to include a fixed conversion price of 5.05p for the convertible loan facility, which expired on September 1.
On Thursday, Zenith said it since has paid a total of USD600,000 to reduce the total outstanding liability in relation to the convertible loan since the revised terms were agreed.
Zenith shares were trading 7.1% lower on Thursday in London at 2.93p each.
By Evelina Grecenko; [email protected]
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