Zephyr Energy: Turner Pope
As well as providing a further positive 36-2R well update, Zephyr has today detailed its retirement of US$3.88m (£3.11m) of existing debt through issuance of 64.05m new ordinary shares (c.3.7% of the enlarged capital) to SGR Investments, LLC (‘SGRI’) at a price of 4.85p per ‘Repayment’ share. Having originally provided a US$8m asset-backed bridge loan facility to Zephyr back on 21 December 2022 in support of the Williston Acquisition, SGRI is now reflecting a high level of confidence in the Group’ broader opportunity by becoming a new cornerstone equity investor. This debt-for-equity exchange, that was completed with no ancillary fees and at no discount to the market price, will further strengthen Zephyr’s balance sheet while increasing future cash flows for reinvestment into its growing asset portfolio. The Repayment shares are being issued using existing share authorities granted to the Board at the Group’s annual general meeting held on 26 July 2023 with their Admission being expected on or around 8 May 2024.
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