Member Info for DanBrown83

if it wasn't AIM i would say suspension
this is AIM so i dont think we will get suspension except for potentially the date of a court hearing, but look at the ANGUS council vote last month, no suspension yet the council vote at the open meeting swang the SP from 30% down to 25% up depending on what was been said and the opinions of how likely a production licence was to be granted

how interesting would it be to watch the SP during a live court trial

i agree TSBS
i can't work out what is truly happening as it makes no sense to me
problem is we as investors are losing out and are'been played' by the market.

its hard to watch profit go to losses due to this manipulation, depending how this works out, i am very interested to see if anyone gets a response from the FCA in this matter

i work in finance, i have seen similar style institutions in the UK and how ruthless they can be
I have been in court rooms with offers of finance to stop repossessions

I have to admit none of my dealings are with Conversion Loans, but i know loan documents are written in favor of the Lender, i have gone through thousands of them and they rarely amend them

To my knowledge, the agreement was we paid in shares on a set date, if we missed that date they have the right to request shares at a discount to the average SP of a certain time period (all these i would presume are stipulated in this document) - as i think its probably written by YA and for the benefit of YA and totally in there favour with our Lawyers making sure the terms are fair, then i can only assume YA are correct in requesting shares, probably wrong pre-selling them, they got caught out massively by NDA RNS, lets face it, if they started shorting at 0.24, sold a load of shares they were expecting at say 0.2, expecting the conversion RNS and a huge drop in SP, they made tons of money, instead the NDA RNS came along, they had pre-sold most but obviously had some to sell on 3rd September, requested shares for September (been at a low price due to the rise not been priced in) to try and cover themselves, no Shares received, no notification from FRR regarding shares and they then issued demand for full payment while same day we challenged them in terms of the conversion

depending on YA's short, they could be hundreds of thousands down in the last couple of weeks hence them really getting nasty

I am worried that there is a potential of FRR been made insolvent and petitioned for bankruptcy, this is a long long way away in reality but it is a potential outcome
My other concern is how we look to the majors we are in discussions with, it can't look good to them or they will be thinking there is a bargain on the table

Its also why i feel let down with BOD, they have created a situation that i feel could of been resolved amicably with YA, making a mountain out of a molehill, 82m shares is nothing in terms of the 15b+ already in issue

big worrier

i agree Star - its not information we are likely to know
we and the general market only typically find out when something should of happened but never did

The more i think about this the more i'm certain we didn't pay else YA wouldn't of started selling the shares they didn't hold yet - they not sold any in June or July and done this, why now, unless we missed the payment and they looked to take advantage of that, then NDA RNS and it screwed them up completely

problem is no one knows if we paid or not and we haven't had formal clarification either way
I don't think YA would have put in Conversion Notices if we had paid in August, they did it nearly 2 weeks after the payment date, and only started forward selling shares once they had put the notice in (28th august) - so i assume there argument is we were selling shares officially owed to us to a willing buyer at an agreed price.
Legalities are a minefield when it comes to this

My other issue is that are we not legally bound to notify the market of conversion notices (whether we intend to dispute or not??)

I dont trust YJ from the Arbitration period
TW publicaly satated we had an Arbitration notice on Thursday
YJ openly stated on Twitter on Saturady there was no Arbitration notice
FRR RNS'd on Monday at 7am that there was an Arbitration notice

So i don't even listen to YJ anymore

i would say we have missed August's payment - theres no wording to say that we have paid and i'm sure if we had that would have been made perfectly clear in an RNS,
YA could only look to convert if we missed and as they asked of shares this would imply we didn't pay, so i think its safe to say we missed the contractual payment.
YA forward sold these shares believing they would get them, they believe they have a legal right to them, the Monday RNS didn't seem to say they weren't due shares but the calculations were wrong
TA issuing a notice for Septembers Shares is tricky, without knowing the full contract terms, one would assume that they have in there that if the payment is defaulted they can switch to shares, but this notice for shares was well before the payment due date - im sure they wanted them straight away as the conversion price would be calculated at previous trading figures (pre-rise) which means they could financially benefit massively with 92m Shares at say 0.23 range (crude calculation) which would cover there short massively (this for me is disputable as we hadn't defaulted September payment)
The timeline gets weird in the Monday RNS, we went back to YA on the 12th but we also received a letter from YA demanding the full $2,650,000 - fact they state letter and i assume some form of postal special recorded delivery was used, there letter was first and the fact is we were put under notice of Liquidation and then we counteed with our investigation.
Both parties seem to be doing a lot wrong here so should be interesting

Round 6 - this is where it gets interesting, there are so many possible next steps

YA are like a wounded animal here in the corner, they are obviously in a vulnerable position and probably more so the higher the SP rises

could be worse, could be the MRS lol

we have headroom to deal with shares on a monthly basis
maybe we do need the headroom for other parts of a bigger deal and Zaza not wanting to let it go.
We ultimately have a debt to service and for whatever reason we have not paid, without reading the full loan contract from June, it is impossible for us PI's to have enough information on the legalities.
both our BOD and YA think they are in the right, but its us that has the most to lose, if we can't resolve with YA and say it goes to court and lose, if we can't pay $2,650,000 debt + cost, what is the potential of finding Frontera going bust before an agreement with a major is secured. What is the chances of a JV / Farm Out while this is going on, if i was a major i wouldn't be wanting to join up with a company that acts like this.

Todays RNS should never have happened, whatever my thoughts on how bad YA are, i blame our BOD for this, we either entered into an agreement that was not affordable or they they have on purpose missed the payment for some reason and challenging YA making the situation ten times worse - a notice of default in Loan Terms usually has recourse of the loan been settled immediately - i work in Commercial Finance - this is serious

This is all down to bad management.

We have been messed about by YA for years, but why at a time when we are in talks with majors make a mountain out of a molehill for circa 1% of the Share Cap.

i agree with 1st Tee
They wanted shares
they know we cant realistically come up with $2,650,000 in cash overnight, we aren't servicing $265,000 or giving them shares as agreed
They have issued formal notice in regards to the full debt to be settled in cash but i am sure they will take $2,650,000 in shares at a discount but i think we would need to raise share cap to facilitate this (can Mole confirm) - personally i just want rid of YA now
It always feels like we are nearly there and then something comes and smack us in the face that no one could foresee

SteveV
Thats how i read it
We missed August so YA are entitled to shares - but its about the number
YA have applied for Septembers but technically we haven't defaulted on Septembers Loan Payment, so YA are now claiming they want the full balance of shares now.
Depending on the finer details of the agreement, they could be in their right to call this in, legally we have agreed to give them cash / shares for payment and we have defaulted, think like a mortgage payment, miss a payment or 2 and get a nasty letter and threats of repossession, YA aint like traditional lenders and will be seeing that this amount of shares could 10bag in the near term, why take $2,650,000 when they can potentially get $26,500,000 on a deal

Hi Mole
The biggest issue is everyone seems to know and gets manipulated well before us as PI's know
we now know the big seller on Friday obviously knew this information

A worry is that the NDA's come to nothing, everyone else will know and SP will drop with chunky sells and then we will find out and it will be a double drop like today

Its getting stressful been in this share that on the information on resource should be trading multiples of where we are today, but there always seems to be something that seeps out the woodwork

This RNS really pissed me off today, still bullish but once again the BOD have held back important information.
They don't need to report whether or not they paid YA in cash last month, but as soon as they got the initial notification from YA we should have been notified. Why not put it in the NDA RNS, it would have had minimal impact at that point and we would have expected it in September too.
My problem is communication, i don't mind facts that effect an NDA but this should have been reported straight away, its the same as the arbitration notice, TW got wind of it weeks before it was reported to us PI's
the concern of mine is what else are they hiding we should know about
Glad its recovering and the fact its only 1% of the Share Cap its minimal, just wish we knew at same time as everyone else

It’s not a huge issue, forward sold already
YA probably want shares instead of cash now so messing is about as usual

I disagree, I think it was a sell but the 20m and 15m in chunks were buys, it’s not been as low as 0.335 in any great volume so saying they worked a buy over 2 weeks is ridiculous, the sell was done to allow the big buys at same time, why the sp dropped but didn’t crash as it was done to facilitate the big buys without rising the price

It probably was a sell, but it means that 20m share sell was actually a buy, the 15m share sells in the morning were likely buys too, I said the pattern didn’t make sense, it actually does now, we all assumed the 20m was a sell at 0.34, but they were letting buys go through at 0.34 after, market making no money, but now I believe that them sells we’re actually buys

you saints fans have it easy
im a Darlington fan,
we have had 3 administrations leading to a total collapse and restart 5 divisions lower after 2 relegations
we have had 3 stadiums, one repossessed, one as a tenant and one as a tenant with the local tin pot rugby club
you guys as football fans have had a very easy time

they are likely sells

12.5m sells there
20m sells at 9am
15 million of trades just before 9am i initially thought were sell but due to fact that the 20m was probably in the system were potentially buys
TBH - Market has held up in terms of this volume of sells