Turner Pope Research Note, 25 June 2025
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| With ambition to further unlock resources located across the Rocky Mountain region of the USA, Zephyr has completed an oversubscribed conditional £10.5m (gross) equity Placing and Subscription (together ‘the Fundraise’). The Placing was made available to certain institutional and professional investors only and was conducted by way of an accelerated bookbuild (‘ABB’), which priced at 3.0p/share (‘the Issue Price’) representing a 20% discount to the closing mid-price of 3.75p on 24 June 2025. In addition to this, certain Zephyr Directors, management and their affiliates intend to subscribe (‘the Subscription’) for up to £0.70 million (before expenses) at the Issue Price, following publication of the Group’s audited results for the year ended 31 December 2024 on or before 30 June 2025. The Placing will settle in two tranches, of which 53.6% will be issued pursuant to existing authorities with the balance (plus the entire Subscription) remaining subject to the passing of certain resolutions (‘the Resolutions’) at a General Meeting to be held on 14 July 2025. TPI considers the successful closing of the Fundraise will provide Zephyr with potential to generate rising near-term cash flow in tandem with meaningful enhancements to its risked-exploration and development upside, neither of which appear reflected in the Group’s present market valuation. We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Zephyr Energy plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination. The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient. |