IFNY Infinity Energy Resources Inc (QB)

On November 8, 2016, Infinity Energy Resources, Inc. (the “Company”) borrowed a total of $200,000 from a private, third-party lender (the “Holder”) under a convertible note payable with the conversion rate of $5.00 per share. The note required no principal or interest payments until its maturity date of November 7, 2017 and bore interest at 8% per annum. The note was not paid on its original maturity date. On April 20, 2017, the Company borrowed an additional $40,000 under a convertible note payable with the same private, third-party lender which was convertible at a rate of $5.00 per share. The note required no principal or interest payments until its maturity date of April 19, 2018 and bears interest at 8% per annum. The note was not paid on its maturity date. Unpaid interest accrued on both notes totaled approximately $45,000 as of March 31, 2019. The Company has been in discussions regarding a potential resolution of the default in repayment of both notes including accrued interest with the Holder.

On June 19, 2019, the Company and the Holder executed an Exchange Agreement whereby the Holder received a New Warrant in exchange for its two convertible notes payable including accrued interest thereon (collectively the “Original Debt”).

Under the Exchange Agreement, the Holder exchanged all of its rights under its Original Debt including $240,000 in unpaid principal and all related accrued and unpaid interest for a New Warrant to purchase 570,000 common shares (post-split basis) with an exercise price of $0.50 per share and a seven-year term. The New Warrant does not contain any price protection provisions.

Upon consummation of the exchange transactions described above, the Holder no longer owns the Original Debt including any rights thereunder, and the Company cancelled the certificate(s) and other physical documentation evidencing the ownership of the Original Debt.