Glori Energy Inc., an oil technology company that deploys its proprietary AERO System to increase oil production from mature oil fields, and Infinity Cross Border Acquisition Corp. (Nasdaq: INXB), a special-purpose acquisition 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.
Following completion of the transaction, 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. Hicks has also joined Infinity’s board of directors.
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 AERO System. In 2014, Glori expects to aggressively pursue the acquisition of oil properties.