LONDON (Alliance News) - Frontier Resources International Ltd on Tuesday said its total pretax loss widened in 2015, a year of low oil prices and volatility in financial markets.
Pretax loss from continuing operations narrowed to USD246,000 in 2015, from USD804,000 in 2014, Frontier said in a statement. It recorded no revenue in either period, with administrative expenses and share-based payments accounting for the losses.
Including discontinued operations, the company's loss for the year widened to GBP3.1 million from GBP1.2 million.
"With no immediate prospect of a material improvement in market conditions in the oil sector or investor sentiment, the board agreed during the year to pursue alternative options for the future funding and development of the group, including the disposal of the group's existing oil exploration projects and the investment in new projects outside of the oil sector," Chief Financial Officer Barbara Spurrier said in a statement.
In accordance with stock exchange rules, Frontier, following the end of 2015, ceased to own, control or conduct any of its existing trading business, activities or assets. It became a cash shell, under which it must make an acquisition or acquisitions which constitute a reverse takeover within six months of the disposal of the remaining operating subsidiaries on March 22.
In February 2016, the company completed a direct subscription with existing and new investors which raised GBP1.4 million before expenses, to be used to provide working capital and to support investment in new projects.
"In conclusion, the past year has been a period of challenge and substantial change for Frontier, but the board believes that the company now has the funds and opportunity to re-build shareholder value. The board's strategy is to identify a suitable acquisition or acquisitions in a new sector," Chairman Adam Reynolds said in a statement.
Shares in Frontier were untraded Tuesday morning, having closed at 0.07 pence Friday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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