Units sold at $0.83; deal funds acquisitions and capital expenditures
By Devika Patel
Knoxville, Tenn., July 21 – ZaZa Energy Corp. arranged a $5 million registered direct offering of units with Crede Capital Group, LLC, according to a prospectus supplement filed Monday with the Securities and Exchange Commission. It may raise an additional $2.5 million by Oct. 20.
The company will sell 6,024,097 units of one common share and 0.6 of a warrant at $0.83 per unit.
Each whole warrant is exercisable at $1.1205 for five years. The strike price is a 28.79% premium to the July 18 closing share price of $0.87.
Proceeds will be used for additional East Texas development and lease acquisitions, capital expenditures, working capital and debt repayment, refinancing or redemption.
Houston-based ZaZa is an onshore oil and gas exploration and development company.
| Issuer: | ZaZa Energy Corp.
|
| Issue: | Units of one common share and 0.6 of a warrant
|
| Amount: | $5 million
|
| Units: | 6,024,097
|
| Price: | $0.83
|
| Warrants: | 0.6 of a warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.1205
|
| Investor: | Crede Capital Group, LLC
|
| Pricing date: | July 21
|
| Stock symbol: | Nasdaq: ZAZA
|
| Stock price: | $0.87 at close July 18
|
| Market capitalization: | $103.92 million
|
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