Under the terms of the deal, Caza will sell Talara a total of 9.47 billion common shares – equal to more than 97% of the company – in return for $45.5 million.
Caza will pay creditors Apollo Investment Management and Yorkville Advisors $43.5 million to retire all of its debts, which will save the company about $450,000 per month in interest, as well as royalty obligations.
