Posted in: commodities-and-mining
RE: Frontera Archive16 Apr 2019 01:27
Posted by daniel1son @ 10:52 on 15th April :-
13. Mr. Hope has repeatedly and systematically thwarted all efforts to
obtain further funding that is required to pay the interest due to OMF and continue
funding FRC’s operations.
14. On March 26, 2018, Mr. Hope blocked a financing transaction
organized by FRC’s London-based broker, WH Ireland, through a fund called
JCAM, to raise $3 million.
15. The following month, FRC’s CEO and President attempted to secure
up to $5 million on a revolving credit basis to ensure that FRC’s operations were
able to continue uninterrupted. Mr. Hope opposed the transaction, although it
would help FRC, because he believed the new credit line might take priority over
Defendants’ interest in FIC’s liabilities. Instead of acting in FRC’s best interests,
Mr. Hope used his effective veto power as a Director to protect Defendants’
financial interests.
16. As a result of Mr. Hope’s above-described actions, and others, it has
been impossible for FRC to obtain funding to support many of its ongoing
operations. In addition, Defendants have used Mr. Hope’s seat on the Board of
Directors to Plaintiffs’ detriment. Despite Mr. Hope’s fiduciary duties as a
Director, Defendants, by and through Mr. Hope, have taken steps to cause FRC
financial distress, risking insolvency, and potential bankruptcy, to benefit
Defendants.
17. Upon information and belief, unbeknownst to FRC and its officers,
Defendants purposefully took steps to cause FRC to be delisted from the AIM
Market of the London Stock Exchange with the goal of eliminating public capital
markets as a potential source for FRC’s operations. Defendants were ultimately
successful, and, on January 25, 2019, FRC was officially delisted and its shares
were cancelled. As a result, Plaintiffs’ avenues for additional funding were
severely limited and its financial prospects were diminished.
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