Infinity Energy to sell $5.5 million extra notes

New York, Nov. 28 - Infinity Energy Resources, Inc. said it has exercised its option to sell an additional $5.5 million of senior secured notes under the terms of its January deal.

The Denver-based energy company delivered a notice of its intention on Nov. 25, according to an 8-K filing with the Securities and Exchange Commission. Settlement is expected by Dec. 9.

Infinity - then known as Infinity, Inc. - originally issued $30 million of the notes on Jan. 13.

The notes pay interest at three-month Libor plus 675 basis points and were sold with five-year warrants to purchase 924,000 shares of common stock for $9.09 per share and 732,000 shares for $11.06 per share.

C.K. Cooper & Co. was placement agent for the Regulation D private placement.

At quarterly intervals over three years beginning in the third quarter of 2005, the company has the option to issue an additional $15 million of notes with warrants, capped at $15 million in any rolling 12-month period and $45 million in total. Additional notes will have an initial maturity of 42 months (54 months if the maturity of the original notes is extended). The issuance of the additional notes is subject to the company's future satisfaction of various closing conditions.

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