Zion Oil Files for New Rights Offering
August 3, 2009 by admin
On Wednesday, July 29, 2009, Zion filed a registration statement with the Securities and Exchange Commission with respect to a proposed Rights Offering to its common stockholders of up to two (2) million shares of common stock. Each whole subscription right will entitle the holder to purchase one share of common stock for $5.00.
Under the proposed rights offering, stockholders have the right to purchase thirteen (13) shares of stock for every one hundred (100) shares of common stock owned on the record date.
Should the rights offering be fully subscribed, the company expects to receive gross proceeds of $10 million, to be used for Zion’s multi-well drilling plan.
Zion CEO Richard Rinberg states: “Although it is not usual to engage in a rights offering immediately following a rights offering, Zion’s Board of Directors have decided to do exactly that.
“In June 2009, we raised gross proceeds of $21 million from a rights offering to common stockholders, but as the rights offering was over-subscribed, we returned approximately $1.1 million in over-subscriptions.
“Due to the very positive reception that our shareholders gave to the completed rights offering and in order to afford an opportunity to shareholders who were not able to exercise subscription rights to the extent that they desired, our Board of Directors decided to commence a new rights offering to our stockholders at the same per share subscription price as the offering completed in June 2009.
“Our drilling program is expensive and we need additional capital in order to fully execute our business plan. So, prior to accessing other sources of capital, we want to give existing shareholders the opportunity to participate in our capital-raising efforts in a manner that allows them to maintain their proportional ownership interest in us.”
If you were among the many hundreds of our stockholders who did not receive as many $5 shares as you subscribed for, this is your ‘second chance’ opportunity. This offer is open to everyone who is a stockholder of record on the (as yet undetermined) record date.
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When will the current rights offering end, and why were shareholders without e-mail not notified of this re-opened offering? Isn’t that an unfair omission for some of your shareholders?
Mary,
This is an independent news website; not operated or sponsored by Zion Oil & Gas or any other oil exploration company. For inquiries regarding operations of specific companies, you should contact the company directly. Zion Oil can be contacted at http://www.zionoil.com.
In answer to your question, however, I believe that Zion Oil, or any other public company, is required to communicate offerings with their share holders via mail as well as electronically. It may be that they haven’t sent out a notice vie e-mail or postal mail yet. Our information came via a press release.
Thanks for reading.