LONDON (Alliance News) - Shares in Frontier Resources International PLC Monday fell 24% after it said that the GBP1.7 million subscription agreement with AGR Energy Ltd No.II will no longer proceed.
Shares in Frontier were trading at 0.700 pence Monday morning.
In March, the oil and gas company entered into a GBP1.7 million conditional subscription agreement with AGR Energy to issue it with 170 million new shares at a price of 1 pence each, and grant it 53.3 million new warrants to subscribe for new shares over the next five years.
However, on Monday, Frontier said that the completion of the subscription should have occurred by the end of last week, but did not due to "factors not directly related to Frontier or AGR Energy".
Frontier said it has now commenced discussions regarding potential alternative funding for its immediate working capital requirements.
AGR Energy has agreed that the repayment date of the secured short-term loan facility of USD200,000 to Frontier will be extended by six months to March 17, 2016, Frontier said.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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