Announcement • Jun 03
Zenith Energy Ltd. (LSE:ZEN) entered into confidentiality and exclusivity agreement to acquire 42% stake in Daybreak Oil and Gas, Inc. (OTCPK:DBRM) from Reabold Resources Plc (AIM:RBD). Zenith Energy Ltd. (LSE:ZEN) entered into confidentiality and exclusivity agreement to acquire 42% stake in Daybreak Oil and Gas, Inc. (OTCPK:DBRM) from Reabold Resources Plc (AIM:RBD) on June 3, 2026. In a related separate transaction, Zenith Energy Ltd. entered into confidentiality and exclusivity agreement to acquire 40% stake in Daybreak Oil and Gas, Inc. from Portillion Capital Ltd on June 3, 2026. Under the terms of these agreements, Zenith has been granted a 90-day exclusivity period to conduct customary due diligence and negotiate the proposed transactions. During this period, both Portillion and Reabold have undertaken not to solicit, initiate, continue, or enter into any competing discussions or transactions in respect of their interests in Daybreak.
The transaction remains subject to the satisfactory completion of due diligence, the negotiation and execution of definitive transaction documentation, and the satisfaction of any other conditions that may be agreed between the parties. New Risk • Apr 28
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 42% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Shareholders have been substantially diluted in the past year (42% increase in shares outstanding). Revenue is less than US$1m. Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Market cap is less than US$100m (UK£15.1m market cap, or US$20.4m). Recent Insider Transactions • Apr 26
Co-CEO & Executive Director recently bought UK£75k worth of stock On the 23rd of April, Sachin Oza bought around 75m shares on-market at roughly UK£0.001 per share. This transaction amounted to 25% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Sachin has been a buyer over the last 12 months, purchasing a net total of UK£124k worth in shares. 
