Glori Energy, a Houston-based tech startup that specialises in increasing oil production from mature oil fields that have reduced productivity, has announced a merger and share exchange agreement with Infinity Cross Border Acquisition Corporation. Following the transaction, which has been valued at approximately $185m, Glori Energy Inc. will become a publicly listed company on the Nasdaq Capital Market under the ticker symbol GLRI.
Previously, Glori Energy secured $14m investment in series B funding, and series C funding of $20m, led by Gentry Venture Partners and joined by Advantage Capital Partners, Energy Technology Ventures, GTI Ventures, Kleiner Perkins Caufield & Byers, Oxford Bioscience Partners, Malaysian Life Sciences Capital Fund and Omzest. Many of the investors have funded the startup in both rounds of funding.
Speaking about the merger, Stuart Page, Glori’s CEO, said: “This opportunity with Infinity provides Glori with immediate access to the resources necessary to continue to execute on our growth strategy. These resources include the funds needed to acquire oil-producing assets that will benefit from the implementation of our proprietary AERO System and expert board members with deep ties in the oil industry. In addition, we believe Infinity’s relationships with participants in China’s oil sector will provide us with opportunities to expand our technology services platform to that region.”
Infinity Cross Border Acquisition Corporation is a part of the Infinity group and is sponsored by their $800m private equity fund. It is also an affiliate of Hicks Equity Partners LLC, the private equity investment instrument of the Thomas O. Hicks family.
Following the merger, Stuart Page, Glori Energy’s CEO, will retain his position, while Mark Chess, Infinity Group’s managing director, and Thomas O. Hicks will join the company’s Board of Directors.
Mark Chess, Infinity Group’s managing director, said: “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. Glori’s profitable business model coupled with an extremely light environmental footprint impacts our double bottom line. Our partnership with Hicks has upgraded this opportunity to a new level. Tom and his team bring unparalleled insight, analysis and relationships to Glori.”