Infinity Energy Resources, Inc. has completed the private placement of a $12.0 million principal amount Senior Secured Convertible Note (the "Note") and a Warrant to purchase 18,000,000 shares of the Company's common stock (the "Warrant") with an institutional investor.
The Company also announced that it will host an investor conference call at 11:15 a.m. Eastern Time on Friday, May 15, 2015 to provide investors with further details regarding the financing and its plans to proceed with exploratory activities (see details below).
At the closing on May 7, 2015, the investor acquired the Note by paying $450,000 in cash and issuing a promissory note, secured by cash, with a principal amount of $9,550,000 (the "Investor Note"). Assuming all amounts payable to the Company under the Investor Note are paid, the private placement will result in gross proceeds of $10.0 million before placement agent fees and other expenses associated with the transaction, subject to the satisfaction of certain conditions. The Company will use the initial proceeds from the closing to retire certain outstanding obligations, including the 2015 area and training fees relating to its oil and gas concessions offshore Nicaragua (the "Concessions"), and to provide additional working capital.