Zenith Energy Ltd. has 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 (approximately £1.8 million ).
Under the terms of the Loan Agreement, Zenith may elect to pay each Instalment either by cash or by utilising 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 programme 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 minimise the use of the Reserve Shares to fulfil the obligations arising from the Loan, and instead maximise 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 utilising our extensive expertise to innovate and adapt to the evolving funding requirements it may have as it delivers on its ambitious African development campaign.”