Infinity acquisition vehicle merges with oil technology co Glori

The transaction is valued at approximately $185 million.

Infinity Cross Border Acquisition Corporation (Nasdaq: INXB), a special purpose acquisition company, and Glori Energy Inc., an oil technology company, have entered into a merger and share exchange agreement whereby Glori will become a publicly listed company through a merger with Infinity, in a transaction valued at approximately $185 million.

The new enterprise will be called Glori Energy Inc. and is expected to be listed on the Nasdaq Capital Market under the ticker symbol GLRI. Infinity’s sponsors are funds affiliated with Infinity Group, an $800 million private equity fund, and an affiliate of Hicks Equity Partners LLC, the private equity investment vehicle of the family of Thomas O. Hicks. In connection with the transaction, Hicks, Infinity Group and other investors have agreed to purchase between $8.5 million and $25.0 million of common stock in Infinity, which purchase will be consummated at the closing of the transaction. Mr. Hicks has also joined the board of directors of Infinity.

Capital from the transaction will be used by Glori to pursue a growth and value creation strategy of acquiring domestic active oil-producing assets for secondary oil recovery that are positioned to benefit from Glori’s patent-pending Activated Environment for Recovery of Oil (AERO) System. In 2014, Glori expects to aggressively pursue the acquisition of oil properties.

Glori’s management team is led by CEO Stuart Page, a seasoned energy executive who led the commercialization of Glori’s AERO System. Mr. Page will continue to serve as Glori’s CEO following the transaction. Mark Chess, managing director of Infinity Group, and Mr. Hicks will join Glori’s board of directors following the transaction.

“We are fortunate to be merging with Glori and partnering with Hicks. We believe Glori's technology is well positioned to capture a significant portion of the enhanced oil recovery market. Our transaction will provide Glori the capital it needs to buy oil-producing properties and increase production at one of the world's lowest costs per barrel," Chess said.

Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2014

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