ZaZa Energy Corporation (NasdaqCM:ZAZA) announced that it has entered into a securities purchase agreement for a private placement of 2,500 shares of series A 5% convertible preferred stock at a price of $1,000 per share for gross proceeds of $2,500,000 with new investor Alpha Capital AG on April 23, 2015. The preferred stock will carry a fixed dividend of 5% per annum and will be convertible into 2,500,000 common shares at a fixed conversion price of $1 per share with a ratio equal to approximately 1,000 shares of common stock for each share of preferred stock. The company will also issue warrants to purchase up to 1,875,000 shares of common stock at an exercise price of $2.25 per share for a period of five years beginning six months after the closing of the transaction.

The initial exercise date of the warrants will be October 30, 2015. The company will issue securities pursuant to exemption provided under Regulation D. The company will reimburse the investor non-accountable sum of $40,000 for its legal fees and expenses, $5,000 of which has been paid prior to the closing of the transaction. The transaction is subject to stockholder approval.