Past year: ▲ 0%(0.01c – 0.01c USD)
Each one in plain English, with the numbers worked through for a shareholder.
19 Oct 2015capital raising announcement● Neutral
On October 16, 2015 ZaZa sold Alpha Capital $50,000 of Series B convertible preferred stock, convertible into 250,000 common shares (about 5,000 shares per preferred share, priced at $0.20 per share). This is a very small raise next to the roughly $55 million of debt management cited and adds dilution to common holders.
21 Aug 2015capital raising announcement▼ BadMajor
On August 19, 2015 ZaZa issued a further $76,727.10 senior secured note to Alpha Capital, plus 50,000 common shares at $0.50 ($25,000 gross). Alpha also bought the O-Cap funds' remaining senior notes, so all the lenders who refused to extend are gone. ZaZa also missed the August 1 interest payment on the convertible notes (30-day grace period running), and says it will re-engage the remaining holders to seek an extension, with no assurance of success. The senior notes remain in default at 13.00%.
30 Apr 2015capital raising announcement● NeutralMajor
ZaZa raised $2.5 million gross by selling 2,500 shares of Series A 5% convertible preferred stock to Alpha Capital Anstalt, plus warrants for 1,875,000 shares at $2.25. The preferred converts into 2,500,000 common shares, ranks ahead of common stock on dividends and liquidation, and is non-voting; conversion/exercise is capped at 19.99% of the common stock unless shareholders approve at the 2015 annual meeting. Warrants first become exercisable October 30, 2015. Northland Securities was placement agent for a 7.0% cash fee. Founders and related holders also signed lock-up agreements (details truncated in the excerpt). This adds potential dilution and a senior claim ahead of common holders.
26 Feb 2014capital raising announcement● NeutralMajor
On February 24, 2014 ZaZa agreed to swap the $47.3M of subordinated notes held by its three founders (CEO Brooks, and directors Hearn and Kearby, via their entities) into about 9.48M new common shares (valued at $0.9495 each) and new 13% preferred stock with a $37.4M total liquidation preference. The swap closes only once the remaining $15.0M of senior secured notes is repaid in full, and the company says it plans to fund that from a notes offering that was not yet effective. This continues the debt-reduction thread after the February Hess settlement; the company says pro forma total debt would be about $55M, down from $113.6M at Dec 31, 2013. It would dilute existing common holders and adds preferred stock ranking ahead of them (the latter is an inference). A special committee of independent directors approved it.
22 Aug 2013capital raising announcement● Neutral
CEO Todd Brooks agreed on August 21, 2013 to buy 1,500,000 new shares directly from the company at $0.92 each (the closing bid that day), for $1,380,000. The company says it will use the money to acquire oil and gas properties, and the release says specifically more acreage in the Eaglebine/Eagle Ford East area. It adds a small number of new shares, so existing holders are slightly diluted.
22 Oct 2012capital raising announcement● NeutralMajor
On October 22, 2012 ZaZa sold $40 million of 9% convertible senior notes due August 1, 2017 in a private placement at $950 per $1,000, for gross proceeds of $38.0 million and about $35.2 million net. The money is meant for drilling spending, leasehold deals and general corporate purposes. The notes are unsecured and can be converted into shares at $2.50 each (400 shares per $1,000 note), so they could dilute existing shareholders if converted. The same day's filing also records a third amendment to the secured noteholders' agreement that allows this new debt and changes the terms of their warrants.
