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Frontera Resources Share Chat (FRR)



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Share Discussion for Frontera Resources




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2
ZenInvestor
Posts: 504
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
Maybe so. Hope's desire for shares surely indicates that he believes the company is close to turnaround. Zaza and Steve didn't want to turn $10 million of loan notes into shares presumably because it would significantly dilute their (and our) holding and would give Hope too big a holding. This haggling was going on between April and late September, before the start of legal action and the 'default.' The conflict of interest in this newly revealed exchange seems to me to be self-evident. If the term sheet referred to is the Durham loan (mentioned here well before we heard about it) then Hope is blocking a loan that would pay off the Outrider debt in order to get a larger chunk of FRR. At no point in this exchange does Hope suggest a loan big enough to pay off Outrider. He just keeps lowering the amount he will approve.
 
Arsenal221
Posts: 34,939
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
Would say that also tells the court Frr would be closing in on paying full payment on L/Notes.
ZenInvestor
Posts: 504
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
TAFFY, do you have any more appendices to post? This one was very revealing.
ZenInvestor
Posts: 504
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
It’s encouraging to see Hope writing on 25 September that ‘the company may find its value appreciating dramatically in the next several months.’ Makes me think we are still bargaining - but through the courts.
Gipps51
Posts: 357
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
It’s clear as day to anyone with a quarter of a brain what Hope is up too. WTF didn’t we get the TRO ? Crazy .
regdik
Posts: 1,317
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
Timing is the all important thing - why take until late September to respond to the April BoD meeting with his terms?

September had Disruption in the boardroom a NY loan looping in the background and Hope trying to appear appeasing to look good in front of any arbitration. He knew that the terms would be unacceptable. Maybee it was Hope forced the showdown and not ZaZa.
AJamesW
Posts: 2,487
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
Exactly right JB.
With Twaat and WSnaKe shorting the life out of the company at the same time.
johnnybbad
Posts: 401
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
If he had taken up sh offer up together with a 5million raise then sh would have got 20 to 25% of FRR and with a RI depressing the SP he may have got up to 30% and over 2 billion frr shares, maybe the other directors didnt want more dilution depressing their own shareholdin percentahe of the company. This would have directors holding probably 50% of frr. Sh would then have been 8n a position to do a Madagascar oil type takeover obliterating us shareholders.
Taffy52
Posts: 220
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
I know hindsight is a wonderful thing but I would have bitten his hand off unless they were worried that with the increased share holding he could have taken over the company
Taffy52
Posts: 220
Opinion:No Opinion
Price:0.00
RE: Email from Hope offering his terms
22 May '19
Hope seems to be offering to convert 50% of his loan notes into stock with the option to buy back his stock at a premium. Presumably beneficial for company/shareholders to do this if the share price rocketed.

He was offering to waive 8% step up on notes.....I’m assuming that’s the increasing value.

This is on the basis that the company also raise 5 million through new share subscriptions ( I think)

Anyone else care to comment. Is there any procedural reason why they didn’t accept this offer?
Taffy52
Posts: 220
Opinion:No Opinion
Price:0.00
Email from Hope offering his terms
22 May '19
m: Giorgi Kalandarishvili Monday, November 12, 2018 3:32 AM Sent: To: Levan Bakhutashvili Subject: FW: Term Sheet From: Stephen Hope [mailto:smh@outridermanagement.com] Sent: Tuesday, September 25, 2018 09:00 To: Giorgi Kalandarishvili Subject: RE: Term Sheet Oh, and as part of this I am willing to waive the 8% step-up on my notes that was triggered in 1H18 and going forward. From: Stephen Hope Sent: Tuesday, September 25, 2018 6:54 AM To: 'Giorgi Kalandarishvili' Subject: RE: Term Sheet Hi Giorgi, I would be willing to do the following: A) Receive my coupon due September 30 (presumably in stock). B) Subject to the raising of at least $5mm in equity through new cash subscriptions before December 31, conversion of up to 50% (at the company1s option) of my debt into equity at that same price and time. C) A lockup period on the shares issued in B of 3 months during which the company can have the ability to repurchase the shares at a 25% premium to the issuance price. I am open to looking at longer lockup periods with higher repurchase premiums. My thinking is as follows: 1. I understand the company needs to reduce its debt burden. 2. Without the raising of new capital alongside the conversion, the company1s problem is not being solved. 3. I am entitled to recover the face amount of my claim, or have a reasonable expectation that such is the case. 4. The company and its shareholders might find it unappealing to allow a large equity conversion with an uncapped upside when the company may find its value appreciating dramatically in the next several months. 5. This achieves substantial deleveraging of the company (leaving it with only ~$15mm of financial debt) and signifies a future path to resolution of the remaining debt if the company succeeds in becoming self-sustaining but has not generated sufficient cash flow to repay the debt by August 2020. Thank you. I will also share this proposal with the board. Best, Steve 1
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