LONDON (Alliance News) - Frontier Resources International PLC Thursday said it will propose a capital reorganisation at the company's annual general meeting at the end of June.
Frontier is proposing the reorganisation to allow the company to raise further equity financing "as and when required" and to assist it in ongoing discussions regarding alternative funding options. Frontier are proposing reducing the nominal value of each Frontier share from the present level of 1.0 pence.
The reorganisation comprises a subdivision of each existing share into one new share and one deferred share and the adoption of the new articles of association. The new shares will have the same rights as the current shares and no new share certificates will be issued to existing shareholders, and their existing share certificates for the same quantity of shares will remain as valid cover, it said in a statement.
Shareholders will vote on the reorganisation at the annual general meeting on June 30.
Frontier shares were down 6.3% to 0.750 pence per share on Thursday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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