zaza energy corp (ZAZA) Key Developments
ZaZa Energy Corporation(NasdaqCM:ZAZA) dropped from NASDAQ Composite Index
Oct 4 15
ZaZa Energy Corporation will be removed from Nasdaq Composite Index.
ZaZa Energy Corporation Announces Extinguishment of $50.1 Million of Debt
Sep 21 15
ZaZa Energy Corporation announced that the holders of all of the 8.00% Subordinated Notes due 2017 totaling $50.1 million in principal plus accumulated interest, have completed the exchange of their notes for an overriding royalty interest (ORRI) in the company's future lease acquisitions. All of these notes were held directly or indirectly by the three Founders of ZaZa Energy Corporation, one of which is the current President and CEO and all of which are Directors. Each of the three holders will receive a 0.8% ORRI on the company's future lease acquisitions, or a total ORRI of 2.4%.
ZaZa Eyes Acquisitions
Sep 21 15
ZaZa Energy Corporation (NasdaqCM:ZAZA) is looking fro acquisitions. President Todd A. Brooks said, "Though the founders received shareholder approval during the summer to convert the Subordinated Notes to common equity, we felt we could add far more value to existing common equity holders by extinguishing the Subordinated Notes without any form of equity dilution. By taking this step, we are eliminating nearly half of our debt, moving from $105 million to $55 million, again, with no dilution to current shareholders. Exchanging a substantial debt holding for a potential royalty in future leases with no dilutive issuance of shares, further aligns management and our founders with our shareholders. This also reflects our expectation that the Company has the ability to grow, not just through lower risk conventional development of its current assets, but also through accretive acquisitions given the state of the industry today."
ZaZa Energy Corporation Receives A Letter From The NASDAQ Listing Qualifications Staff
Aug 31 15
On August 26, 2015, ZaZa Energy Corporation received a letter from The NASDAQ Listing Qualifications Staff stating that the Staff has determined that the Company’s securities will be delisted from The NASDAQ Stock Market LLC (“NASDAQ”). As previously disclosed, on February 26, 2015, the Company received a deficiency letter from The NASDAQ notifying the Company that the market value of its listed securities had been below the minimum $35 million required for continued listing set forth in NASDAQ Listing Rule 5550(b)(2). The Company did not regain compliance with the market value requirement for continued listing within the 180-day grace period. The Letter further indicates that, unless the Company requests an appeal, trading of the Company’s common stock will be suspended at the opening of business on September 4, 2015, and a Form 25-NSE will be filed with the Securities and Exchange Commission, which would remove the Company’s securities from listing and registration on NASDAQ. The Company is permitted to appeal the delisting determination to a NASDAQ hearings panel, and the Company intends to do so. If the Company’s appeal does not result in overturning the delisting determination, the Company’s securities may be eligible to continue to be quoted on the OTC Bulletin Board or in the “Pink Sheets.”
ZaZa Energy Corporation Announces Amendment No. 10 to the Senior Secured Notes Purchase Agreement
Aug 11 15
Effective as of August 5, 2015, ZaZa Energy Corporation entered into Amendment No. 10 to the Senior Secured Notes Purchase Agreement (Amendment No. 10), which permits the Company to issue additional Senior Secured Notes in an aggregate principal amount not to exceed $500,000. Amendment No. 10 required that any such additional note would be issued solely for cash in an amount equal to 100% of the principal amount of the notes. In accordance with Amendment No. 10, effective as of August 5, 2015, the Company issued an aggregate of $340,000 in principal amount of additional Senior Secured Notes (the August 2015 Notes) in equal amounts to Jubalee Ltd. (an affiliate of John E. Hearn, Jr., a director of the Company) and $187,000.00 to Todd A. Brooks, the Company's Executive Director, President and Chief Executive Officer. Each of the purchasers of the August 2015 Notes also entered into a Supplement to Securities Purchase Agreement, each dated as of August 5, 2015 (each, a Supplement), under which the note purchaser agreed to be bound by and to comply with the terms and provisions of the Senior Secured Notes Purchase Agreement in connection with the issuance of the August 2015 Notes. Mr. Brooks and Jubalee Ltd. also executed joinders (the Collateral Agency Agreement Joinders) to that Collateral Agency Agreement, dated as of February 21, 2012 (the Collateral Agency Agreement), among U.S. Bank, the Company, its domestic subsidiaries and the Purchasers. The terms of the August 2015 Notes are identical to the terms of the currently outstanding Senior Secured Notes. Thus, the August 2015 Notes bear interest at a rate of 10.00% per annum, mature on February 21, 2017, are guaranteed by all of subsidiaries and are secured by a first-priority lien on substantially all of assets and those of domestic subsidiaries. To the extent such assets include stock of any foreign subsidiaries, only 65% of such foreign subsidiary stock is to be pledged as security for the August 2015 Notes. The August 2015 Notes (along with the Senior Secured Notes) rank senior to all of other debt and obligations.