Exploration & Production | Finance & Investing | Top Story | Capital Markets
ZaZa to Devote New Funds to Eaglebine Development
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ZaZa Energy Corporation has entered into a $7.5 million capital markets transaction with Crede Capital Group, LLC, a Los Angeles-based family office. The Company plans to use the proceeds to fund additional East Texas development and lease acquisitions.
The investment will be made in two phases. The closing of the first phase, which has occurred today, is for $5 million gross proceeds in exchange for ZaZa common stock at a price of $0.83 per share. The price per share was determined by the closing price on July 17, 2014 as reported on the Nasdaq Capital Market. The transaction also includes 0.6 warrants for every share of ZaZa common stock with a strike price of $1.1205 per share, a 35% premium to such price. The second phase for $2.5 million is scheduled to close on or before October 20, 2014, and also includes 0.6 warrants for every share of ZaZa common stock. The price for such additional shares shall be determined by reference to the closing price of ZaZa common stock on the day prior to such additional issuance.