Bondholders may convert their bond at their option at any time prior to the close of business on the business day immediately preceding the 30 day period before the maturity date, unless we elect to redeem the bonds. After the second anniversary of the issuance of the bonds, we are entitled to redeem the bonds.If we undergo a fundamental change, bondholders may require us to repurchase for cash all or any portion of their bonds at a fundamental change repurchase price equal to 100% of the principal amount of the bonds to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date, as described in the prospectus supplement. The convertible bond is an unsecured debt obligation, but will be our senior unsecured obligation and will rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the bond, will rank equally in right of payment with any of our unsecured indebtedness that is not so subordinated, and will be effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness. The subscription rights will expire, if they are not exercised by 5:00 p.m., Eastern Standard Time, on January 15, 2016. The minimum subscription amount required for consummation of this rights offering is one whole right of $200.00 for two (2) convertible bonds. If you exercise your rights in full, you may also exercise an over-subscription right to purchase additional subscription rights that remain unsubscribed at the expiration of the rights offering, subject to availability and allocation of subscription rights among persons exercising their respective over-subscription rights. Subscription rights that are not exercised by the expiration date will expire and have no value. The bonds are not currently trading on any market. An application has been filed for "DTC eligibility" for over-the-counter trading for the bonds. We may file an application with NASDAQ in the future to list the bonds on the NASDAQ Stock Market. If our application is accepted, the symbol "ZNOGG" has been reserved to designate the Bonds.
The bond Trustee is American Stock Transfer & Trust Company, LLC, our stock transfer agent. The subscription rights are non-transferable. The subscription rights may not be sold or transferred except for being transferable to affiliates of the recipient and by operation of law.For a complete description of the terms and conditions of this rights offering, we highly encourage shareholders to read and study the registration statement (Registration No. 333-193336 and base prospectus dated March 27, 2014), including the prospectus supplement dated October 21, 2015. The registration statement and prospectus supplement can be found at www.sec.gov by searching "ZN," on our website at www.zionoil.com/Bondprospectus, or mailed upon your request. Contact us toll-free at 1-888-891-9466 for more information.
Contact:Zion Oil & Gas, Inc.6510 Abrams Rd., Suite 300Dallas, TX 75231Brittany MartinTelephone: 214-221-4610 Email: email@example.com