Zapata Corporation Sells Remaining Omega Protein Stock for $29.0 million in Private Transaction
ROCHESTER, N.Y.--(BUSINESS WIRE)--Dec. 4, 2006--Zapata Corporation (NYSE:ZAP) Chairman and CEO, Avram Glazer, announced today that on December 1, 2006, Zapata completed a private placement resale transaction in which it sold its remaining 5,232,708 shares of Omega Protein Corporation (NYSE:OME) common stock to a group of institutional investors for gross proceeds of approximately $29.0 million. D.A. Davidson & Co. acted as the sole placement agent in the transaction.
Mr. Glazer said, "Zapata has had a long and rewarding relationship with Omega Protein and we wish them well. Zapata can now focus on enhancing value and creating an exciting future for all our shareholders. Zapata plans to continue to evaluate strategic opportunities for the use of our capital resources."
The securities sold by Zapata were not registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933. In connection with the private placement, Omega Protein has agreed to file with the Securities & Exchange Commission within 30 days after closing a shelf registration statement covering the resale of the shares and to exercise commercially reasonable efforts to cause the registration statement to become effective as soon as reasonably practicable.
About Zapata:
Zapata is a holding company which has approximately $150 million in cash and cash equivalents and currently owns 98% of Zap.Com Corporation (OTCBB: ZPCM), which is a public shell company.
About D.A. Davidson
D.A. Davidson & Co. is a full service investment firm with operations throughout the Western U.S. Founded in 1935, the firm is the largest securities firm based in the region, with over $20 billion in client assets under management approximately 950 professionals. As a full-service investment firm, Davidson provides research, investment banking services, bond sales and trading, stock sales and trading and private brokerage services. D.A. Davidson's investment banking group underwrites public offerings, serves as a placement agent for private financings, and advises companies in mergers and acquisitions.
FORWARD-LOOKING STATEMENTS
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are "forward-looking" statements that involve risks and/or uncertainties as described in Part II, Item 1A "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2006, as well as Part I, Item 1A., "Risk Factors" in the Company's Annual Report on Form 10-K for the period ended December 31, 2005. You are cautioned not to place undue reliance on any forward-looking statements. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.
CONTACT: Zapata Corporation
Leonard DiSalvo, 585-242-8703
SOURCE: Zapata Corporation