LONDON (Alliance News) - Frontera Resources Corp said Wednesday that YA II PN Ltd "arbitrarily" sold 82.1 million shares in the company which had not been "authorised, issued and admitted to trading" by Frontera.
The company said it commenced an investigation into the share sale to "clarify what shares have been sold and why".
Frontera has 15.77 billion shares in issue and a market capitalisation of GBP49 million. The stock was trading up 0.3% at 0.31 pence each on Wednesday, making the 82.1 million shares worth GBP2.5 million.
On Monday, the oil & gas company had said it received a demand for USD2.7 million from YA II PN over the failure and refusal to convert preferred shares into ordinary shares.
Frontera said it "vigorously disputes the validity of both the conversion notices and the purported default notice, and is continuing to investigate YA II PN's actions in that regard". It also reiterated that it has "serious concerns as to the validity of the conversion notices and the calculations" and therefore did not take any action pending an investigation.
