Published on 4/13/2010 in the Prospect News PIPE Daily.
New Issue: Zapata Energy concludes C$17 million private placement of units, stock
By Devika Patel
Knoxville, Tenn., April 13 - Zapata Energy Corp. said it completed a C$17 million private placement of units and stock. The deal priced March 25.
The company sold 1,344,317 units at C$4.40 per unit and 681,819 flow-through units at C$4.40 apiece. Each unit consists of one common share and one warrant. Each flow-through unit consists of one common share and one warrant.
The unit warrants are exercisable at C$5.17 for five years. The flow-through unit warrants will vest and become exercisable with one-third upon the 20 day weighted average trading price of the common shares equaling or exceeding C$5.69, an additional one-third upon the market price equaling or exceeding C$6.20 and a final one-third upon the market price equaling or exceeding C$6.72.
The company also sold 1,787,500 common shares at C$4.40 apiece.
Proceeds will be used to pay down debt and for general corporate purposes.
Zapata is a Calgary, Alta.-based oil and natural gas exploration, development and production company.
| Issuer: | Zapata Energy Corp.
|
| Issue: | Units of one common share and one warrant, flow-through units of one common share and one warrant, common shares
|
| Amount: | C$17 million
|
| Price: | C$4.40
|
| Pricing date: | March 25
|
| Settlement date: | April 13
|
| Stock symbol: | TSX Venture: ZCO
|
| Stock price: | C$7.42 at close March 25
|
| Market capitalization: | C$135 million
|
|
|
| Units
|
| Amount: | C$6,134,995
|
| Units: | 1,394,317
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$5.17
|
|
|
| Flow-through units
|
| Amount: | C$3,000,004
|
| Units: | 681,819
|
| Warrants: | One warrant per unit
|
| Warrant strike price: | Variable
|
|
|
| Shares
|
| Amount: | C$7,865,000
|
| Shares: | 1,787,500
|
| Warrants: | No
|
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