Zion is dedicated to exploring for oil and gas onshore Israel and is 100% focused on its Megiddo-Jezreel License, a large area south and west of the Sea of Galilee that includes the Jezreel and Megiddo valleys. This license gives Zion the exclusive right to explore in an area of approximately 99,000 acres that appears to possess the key geologic ingredients of an active petroleum system with significant exploration potential. Zion’s latest information on ongoing operations can be found on their website: https://www.zionoil.com/updates
Zion’s common stock trades on the NASDAQ Global Market under the symbol “ZN”.
All of this information is contained within the filings with the SEC. Please know that stock issuances do not mean executive staff actually exercise and/or sell the shares. Much of the rumors on the internet about how much the executive staff makes are exaggerated.
1. It is essential to understand that reportable compensation does not equal W-2 earnings.
2. Salary and Bonus represent less than 49% of all reportable compensation.
3. Stock options awarded, regardless of whether those options were exercised, represent over 38% of all reportable compensation.
4. It is important to note that there has been a company-imposed blackout period, restricting the sale or purchase of stock for all employees, implemented on May 15, 2017, which remains in effect to date.
As we previously disclosed, the Securities and Exchange Commission (“SEC”) first informed Zion of a non-public, fact-finding inquiry by subpoena for production of documents received on June 21, 2018, before which Zion had no formal or informal communication with the SEC regarding this matter.
The SEC has asserted no accusation of wrongdoing nor have they expressed any negative opinion of any person within Zion. Zion continues to fully cooperate with and work with the SEC.
Following Zion’s disclosure of the SEC investigation, a putative class action (the “class action”) Complaint was filed against Zion, Victor G. Carrillo, the Company’s former Chief Executive Officer, and Michael B. Croswell, Jr., the Company’s Chief Financial Officer, in the U. S. District Court for the Northern District of Texas. An Amended Complaint was filed on January 22, 2019, and we anticipate filing a Motion to Dismiss on March 13, 2019. Four shareholder derivative suits were filed after the class action, one in state court in Dallas, Texas, and three in federal district court in Delaware. We believe these claims are frivolous and without merit, and we are waging a vigorous defense.
Zion has been a publicly reporting company since 2007 whose stock has been listed on Nasdaq since 2009, in which time it has filed, as required, audited annual reports on Form 10-K and quarterly reports on Form 10-Q, in compliance with all relevant SEC and Nasdaq rules. We would ask that you refer to those filings to help answer any questions you may have about Zion.
Nasdaq companies whose shares are listed on Global Market and who fail to comply with the required minimum closing bid price of $1 for 30 consecutive trading days will ordinarily receive a so-called deficiency notice. Once such notice is received, the Company will automatically have 180 days in which to regain compliance with the $1 minimum bid price. Compliance is regained by trading at above the $1 minimum bid price for 10 consecutive trading days, subject to Nasdaq requiring a longer trading period if it determines that this is necessary in order to establish long-term compliance with the minimum closing bid price.