LONDON (Alliance News) - Shares in Frontera Resources Corp rose on Friday as the company resolved ongoing issues with YA II PN Ltd.
Shares in the oil and gas company were trading up 12% at 0.43 pence each.
Frontera said it will redeem the outstanding 2,650 series A shares held by YA II on a monthly basis starting in November.
It will pay USD64,900 per month until April 2019 and then USD149,600 per month until July 2019, with a final lump sum redemption payment of USD2.1 million on July 1, 2019, to redeem all remaining outstanding series A shares, which will then be cancelled.
Frontera Chief Executive Officer Zaza Mamulaishvili said: "I am very pleased with the way the company has resolved its disagreement with YA. The settlement terms are mutually workable for both the company and YA."
"As a result of this settlement, the inconvenient overhang of monthly conversion has been removed which should positively reflect on the company's share price and market position going forward."
At the end of September, Frontera said it received a demand for USD2.7 million from YA over failure and refusal to convert preferred shares into ordinary shares.
