I k now that there has been significant shorting recently. Yes, that is a possibility. If someone knew there were bad news coming, we would be a lot lower. Why don't you just bail if that order makes you nervous?
Your post assumes that the concession is worthless. It is not. We don't know what the value is; that would require a risk assessment so a risk-adjusted value could be assigned. Amegy knows the concession has some value, and they have a lot of warrants carrying exercise prices far higher than the current pps. It would be absolutely irrational of them just to throw their stock onto the market and walk away. If anything they would either stay the course or put the concession up for bid. And I don't see them putting the concession up for bid.
I don't think Stan has been stringing anyone along. I think he may have been too optimistic with timelines, that is all. But the required milestones have been achieved, even if not as quickly as we would have liked. E.g., EIA, seismic. IFNY is now on the threshhold of the next major stage: signing up a drilling and/or financial partner(s). If they succeed, we go to the next stage, drilling a hole. If they don't, then the concession will be sold to the highest bidder, and the proceeds distributed to creditors and then to equity.
BTW, it was also made clear - to those who pay attention - that the 10-K was going to be delayed. I think it will be filed next week.
"Putin said before the trip that he has his eye on Latin America's oil and bauxite, and plans to woo regional leaders with offers of increased Russian investment and trade in return"
What if the Russians are looking into IFNY's concession?
I also noticed the extra decimals. That's not retail; at least I know I cannot put in a bid or ask in an increment smaller than 1 cent.
I think it is either a good sign or neutral. Hard to tell based on just one day's trading.
As I have stated before, I strongly believe there will be some sort of partner deal in the near term because Infinity will pretty much have to accept the best deal it can. I also strongly believe that the announcement of a deal - even if it is only modestly favorable to IFNY - will positively affect the pps.
Not sure who is more guilty of wishful thinking. You or the pumpers.
Time will tell. I am sure you will be back to gloat if things work out the way the way you want, but will you come back to eat crow if they don't? Doubtful. Again, time will tell. Soon.
STA: You have grossly misrepresented what was stated in the CC. Your "summary" is so grotesquely distroted (with very significant parts conveniently left out) that anyone with any comon sense would have to conclude that you are deliberately trying to mislead the people who read this board. Now , why would you want to do that? Do you just hate Stan or do you have a significant short position that you need to cover?
Another thought. Nicaragua is a developing country. It used to be that certain development agencies, like the IFC, would possibly be interested in helping to finance this project through debt and equity. However, many now have policies that only allow them to get involved in sustainable energy projects. Oil wells and refineries are out. Nevertheless, even though they cannot finance directly, they may still want to help by providing advisory services to put the deal together and to pull in private sector financing sources.
The point of these posts is to point out that there seems to be a whole world of potential financing out there (e.g., the Chinese might be very interested), beyond the oil industry and small investor cionferences.
Think bigger, Stan. Much bigger.
The loan referenced in the 8-K was made on December 27, 2013. It was a 60-day loan for $1,050,000. It was first extended in late February. Now it has been extended again.
When the loan was first made (December 27, 2013) the lender was given a warrant to purchase 1 million shares of IFNY at $1.50/share. The loan also had a penalty clause providing that If IFNY failed to pay the note by the maturity date, the shares covered by the warrant would go to 13,333,333 and the exercise price would go from $1.50 to $0.075 per share. IMO, in light of the number of shares held by Amegy, there is no way Amegy would allow such an event to occur (meaning Amegy would pay off the loan) unless Amegy determined that IFNY and the concession were a complete loss. I cannot see Amegy reaching that conclusion unless several holes are drilled and they come up dry. So I am not concerned about the penalty clause.
To obtain the first 60-day extension, IFNY only had to pay the lender's legal transaction costs to document the extension. With regard to the second extension, the lender has pushed the maturity date out to December 7, 2014. IMO, that is a very good thing as it gives IFNY more time to ffind and negotiate an acceptable deal with a financial drilling partner. But what did the second extension cost?: Two things:
1. The warrant exercise period was changed to Dec 7, 2014 - Dec 7, 2017. IMO, no biggie.
2. IFNY agreed to enter into an agreement by May 23 giving the lender a share of all gross revenues from the concession. If IFNY pays the loan off by August 7, 2014, the share will be 1/2 of 1%. If it pays it off after August 7, the share will be 1%. This is the real cost of the second extension. However, I (and Stan and many others) have always assumed that IFNY would have to give up between 75% and 95% of concesssion revenues to get the money to operate/drill? So there goes the first 1/2 of 1%, but I don't see it as any cause for concern.
Good post. I agree that the next CC will likely be a very significant one. I certainly hope that Stan can put together a good deal before August 7, so we can pay off the loan and limit the lender's percentage of concession gross revenues to 1/2 of 1%.
I think Stan has done a very commendable job limiting the amount of dilution for such an under-capitalized company.
I still think that IFNY should consider a convertible preferred share offering to raise $10-15 million or so to finance the drilling.
For example, they could issue 1.5 million convertible preferrred shares at $10/share carrying a 12% interest rate with a priority to all dividends until holders have been paid back the purchase price and all accrued interest rate, a priority to any distribution of proceeds from the sale of assets (downside protection), the right to 2 seats on the board, and the right to convert the shares into 10X as many common shares (15 million common shares). This would mean that the existing common holders would - in the long run - be diluted far less than under a scenario where we give up 75%-90% of concession revenues to a drilling/financial partner .
One more point: IFNY is sitting on a potential world cIass play. Perhaps Stan should stop going to small-fry investor conferences and start talking to the big investment houses who could do a private placement of such an offering with their lunch money.
If the big oil guys are interested, and they learn that Stan may have decided to use a name investment house to finance this internally, it may help them focus on putting forth a very acceptable offer in the near term.
Summary, maybe Stan should braoden his circle of contacts beyond the oil industry and small investor conferences.
Think private placement, Stan.
Oh come on. That is just a silly and illogical post.
NBL failed to find oil in one well that stopped short of the targeted depth. Oli was found on IFNY's concession a few decades ago. What will determine whether IFNY's concession will be drilled in the near term is whether a prospective partner sees something in the seismic that seems to justify the risk of investing in a well or two or three. That's it and that's all. Besides, given the situation in the Middle East, there is a lot of renewed interest in the industry in looking for new sources.
OVERLAND PARK, KS, Apr 30, 2014 (Marketwired via COMTEX) -- Infinity Energy Resources, Inc. (otcqb:IFNY) ("Infinity" or the "Company"), an independent oil and gas exploration and development company, today announced that it will host an investor conference call at 11:15 a.m. Eastern Time (EDT) on Tuesday, May 13, 2014.
The call will be hosted by Mr. Stanton Ross, Chief Executive Officer of Infinity Energy Resources, who will discuss recent developments in Nicaragua, data room activity, and other topics of interest.
Conference Call Information
To participate in the conference call, shareholders and interested parties should dial 888-317-6003 (international/local participants dial 412-317-6061) about 10 to 15 minutes prior to 11:15 a.m. EDT on Tuesday, May 13, 2014. Callers must be prepared to provide the Elite Entry Number "2825795" in order to access the Infinity Energy Resources conference call.
A replay of the conference call will be available one hour after completion of the call until July 14, 2014, at 5:00 pm Eastern Time by dialing 877-344-7529 (international/local participants dial 412-317-0088) and entering conference I.D. #10045616. The call will also be available on the Company's website for 30 days following the call at [IFNY website].
I doubt that it will be a non-event. There will be some sort of news, almost certainly PR'd on the morning of the 13th. At the very least we will certainly learn the status of the payday loan (extended, paid off, defaulted).
I think it is interesting that we have a PR announcing the CC 13 days in advance. That can be seen as possibly good (there is a deal closing scheduled for late Monday the 12th), and possibly bad (they are trying to get something done but are running out of time and pushed the CC off to the latest possible date).
In any case, it won't be neutral or a non-event.
Possibly someone is carefully accumulating in bursts. And there is definitely some surgical shorting going on. Possibly to keep the price suppressed so that some folks - those who think the market always knows in advance - will think that it is time to sell.
Correction to the second sentence of the above: The loan was originally a 75-day loan (not a 60- day loan), and the first extension occured on March 7 (not in late February).
Also, the loan bears annual interest at the rate of 8%.