Dallas, Texas 12/23/2014 (FINANCIALSTRENDS) – ZaZa Energy Corporation (NASDAQ:ZAZA) recently filed Form 8-K with the SEC pursuant to its Settlement Agreement with the investor Crede CG III, Ltd., and an amendment to the Consulting Agreement with a former CFO Ian H. Fay.
In November, ZaZa Energy reported its financial and operational results for three months and nine months ended September 30, 2014. The company reported strong production performance with 145% YoY increase to 54.8 MBOE during 3Q14. The company reported net income of $10.1 million for 3Q14 compared to a net loss of $(20.6) million in 3Q13.
The stock has gained close to 60% through the past three sessions, including 22% gains on Monday. The stock is still trading 80% below its 52-week high of $11.50.
Pursuant to the Securities Purchase Agreement signed in July 2014, the company entered into a Settlement Agreement with the investor on November 18, 2014, to resolve their disagreement over the number of shares issuable upon exchange of the warrants.
ZaZa Energy Corporation (NASDAQ:ZAZA) has agreed to immediately issue 787,530 shares to the investor and an additional 212,470 shares at a date as may be determined by federal securities laws. The agreement also releases both the parties from all further obligations under the previously signed Securities Purchase Agreement.
Amendment to Consulting Agreement
The company also entered into an amendment to the Consulting Agreement with Mr. Fay on November 13, 2014. The amendment is connection with a previously singed consulting and separation agreement in May 2014.
As per the amendment, ZaZa Energy Corporation (NASDAQ:ZAZA) has agreed to make a lump-sum payment of $487,500 to Mr. Fay and terminated its obligation to make any future payments. Under the terms of this amendment, Mr. Fay will no longer be obligate to offer consulting services to the company under the Consulting Agreement. The amendment also provided for the vesting of 16,960 unvested shares previously granted to Mr. Fay.