Frontera Resources Corporation Financing Update (5597Q)
07 June 2018 - 4:00PM
UK Regulatory
TIDMFRR
RNS Number : 5597Q
Frontera Resources Corporation
07 June 2018
7 June 2018
Frontera Resources Corporation
("Frontera" or "the Company")
Financing Update
Frontera Resources Corporation (AIM: FRR), the European focused
oil and gas exploration and production company, today provides the
following corporate finance update.
As announced on 18 May 2018 and described in the Shareholder
Circular of the same date, on 17 May 2017 the Company entered into
agreement with YA II PN, Ltd (formerly, YA Global Master SPV Ltd,
an investment fund managed by Yorkville Advisors LLC) (hereinafter
"YA"), whereby the entire amount of debt, which had been provided
to the Company by YA under the previously announced SEDA-Backed
Loan Agreement, was converted into equity by issuing to YA 7,200
Series A convertible, preferred, redeemable shares in the Company
(the "Series A") with the redemption value of $1,000 per share.
Over the 12-month period after their issuance, the Series A shares
were convertible into a maximum of 1,300,000,000 ordinary shares of
the Company. The last such conversion took place on 4 April 2018,
as announced on the same date, following which YA holds the
remaining 2,891 Series A shares with the redemption value of
$2,891,000 which are redeemable on 16 June 2018.
The Company and YA have now agreed that the redemption of the
remaining 2,891 Series A shares will take place over 12-month
period, on a monthly basis, for which the Company will be making
cash redemption payments to YA of US$265,000 per month. Once so
redeemed, the Series A shares will be cancelled. The Company has
also the right to convert redeemable Series A shares into ordinary
shares, at its option. The Company will also have the right to pay
down in cash the entire redemption amount for the outstanding
number of Series A shares at any point.
As consideration for this agreement, the Company has agreed to
issue 10,000,000 new ordinary shares in the Company ("New Ordinary
Shares"), at market price, to YA II PN. Application will be made
for New Ordinary Shares to be admitted to trading on AIM, which is
anticipated to occur on or around 14 June 2018 ("Admission"). The
New Ordinary Shares will rank pari passu with the existing Ordinary
Shares of the Company. Following Admission, the Company will have
15,770,835,403 Ordinary Shares in issue with voting rights. The
Company does not hold any Ordinary Shares in treasury and
accordingly there are no voting rights in respect of any treasury
shares. The aforementioned figure of 15,770,835,403 Ordinary Shares
may be used by shareholders as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change to their interest in, the Company, under
the disclosure requirements applicable to the Company.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Frontera Resources (713) 585- 3216
Zaza Mamulaishvili
info@fronteraresources.com
Cairn Financial Advisers LLP +44 (0) 20 7213 0880
Jo Turner / Liam Murray
WH Ireland Limited +44 (0) 20 3411 1880
James Joyce / Alex Bond
Yellow Jersey +44 (0) 203 735 8825
Tim Thompson
Harriet Jackson
Henry Wilkinson
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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