Company sells senior secured notes due 2018 to fund working capital
By Devika Patel
Knoxville, Tenn., May 8 – Infinity Energy Resources, Inc. said it settled a $12 million private placement of 8% senior secured convertible notes on Thursday. WestPark Capital, Inc. was the agent.
The note matures in three years and is convertible into common shares at $0.50 per share. The conversion price is an 11.11% premium to the May 6 closing share price of $0.45.
Investors also received seven-year warrants for 18 million shares. The warrants are each exercisable at $0.50, also an 11.11% premium to the May 6 closing share price.
The notes are prepayable at any time, in whole or in part.
Proceeds will be used to retire debt and as working capital.
“We are very excited to announce the completion of this private placement,” chief executive officer Stanton E. Ross said in a press release. “We will immediately request permission from the Nicaraguan government to move forward with the identification of possible drill site locations, and a required supplemental environmental study will begin this month.
“Upon our receipt of the government's authorization for us to drill five wells, we believe we will have the financing to move forward with initial exploratory drilling on our 1.4-million-acre oil and gas concessions in the Caribbean Sea offshore Nicaragua. With the closing of this private placement, we intend to finalize our previously announced partnership with Granada Exploration LLC over the next few weeks,” Ross said in the release.
Based in Overland Park, Kan., Infinity is an oil and natural gas exploration company.
| Issuer: | Infinity Energy Resources, Inc.
|
| Issue: | Senior secured convertible note
|
| Amount: | $12 million
|
| Maturity: | Three years
|
| Coupon: | 8%
|
| Conversion price: | $0.50
|
| Conversion premium: | 11.11%
|
| Warrants: | For 18 million shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.50
|
| Agent: | WestPark Capital, Inc.
|
| Call: | Yes
|
| Settlement date: | May 7
|
| Stock symbol: | OTCBB: IFNY
|
| Stock price: | $0.45 at close May 6
|
| Market capitalization: | $13.55 million
|
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