Note 11 – Subsequent Events
The Company has not resolved the contingency related to the expired letters of credit and the delinquent payment of annual training program and area fees for 2016 as required by its Nicaraguan Concessions (See Note 9). The Company continues to attempt to negotiate the renewal of the letters of credit and payment of the annual training program and area fees with the Nicaraguan Government and its lenders; howeve r, there can be no assurance that the Company will be successful in that regard.
On December 27, 2013 the Company borrowed $1,050,000 under an unsecured credit facility with a private, third-party lender which facility has an outstanding principal balance of $1,000,000. The facility is represented by a promissory note (the “Note”) that matured in April 2016, and is currently in technical default. The Company is seeking an extension of the maturity date; however, there can be no assurance that it will be able to obtain an extension or what the final terms will be if the lender agrees to such extension.
On November 7, 2016, the Company borrowed a total of $200,000 from an individual under a convertible note payable with the conversion rate of $5.00 per share. The term of the note was for a period of 365 days and bears interest at 8% per annum. Proceeds of the note were used for working capital purposes.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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