Investor receives warrants for 1,875,000 shares, exercisable at $2.25
By Toni Weeks
San Luis Obispo, Calif., April 30 – ZaZa Energy Corp. said it will raise $2.5 million through a private placement of series A 5% convertible preferred stock. Northland Capital Markets was the agent.
The preferred stock has a total liquidation preference of $2.5 million and is convertible into 2.5 million shares.
The single investor will also receive warrants for 1,875,000 common shares. Each five-year warrant is exercisable at $2.25 per share, a 66.67% premium to the closing share price of $1.35 on April 29.
Proceeds will be used to drill and develop its Buda-Rose “stack-and-frack” wells, to execute workovers for production enhancement in existing wells and for working capital.
Houston-based ZaZa is an onshore oil and gas exploration and development company.
| Issuer: | ZaZa Energy Corp.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $2.5 million
|
| Dividend: | 5%
|
| Warrants: | For 1,875,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.25
|
| Conversion rate: | Into 2.5 million shares
|
| Agent: | Northland Capital Markets
|
| Announcement date: | April 30
|
| Stock symbol: | Nasdaq: ZAZA
|
| Stock price: | $1.35 at close April 29
|
| Market capitalization: | $19.27 million
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