28 Sep 2017 14:57
28 September 2017
Frontera Resources Corporation
("Frontera" or the "Company")
Conversion of Series A Preferred Convertible Shares into Ordinary Shares
Frontera Resources Corporation (AIM: FRR), a European focused independent oil and gas exploration and production company, today announces that on 27 September 2017 it has received a conversion notice from YA II PN, Ltd. ("YA") to convert 400 Series A Preferred Convertible Shares ("Convertible Shares") out of its outstanding total of 6,000 Convertible Shares.
Pursuant to the agreement with YA, the Company negotiated with YA a conversion price of 0.0472 pence, which will result in the issue of 63,076,271 new ordinary shares ("New Ordinary Shares") to YA.
The agreement with YA contains a limitation of a maximum of 1,300,000,000 ordinary shares ("Ordinary Shares") that YA is entitled to convert before 16 June 2018. Following this conversion, 850,410,253 Ordinary Shares out of agreed 1,300,000,000 will have been converted and issued to YA. Accordingly, YA may only convert a further 449,589,747 Ordinary Shares before 16 June 2018.
Application will be made for New Ordinary Shares to be admitted to trading on AIM, which is anticipated to occur on or around 5 October 2017 ("Admission"). The New Ordinary Shares will rank pari passu with the existing Ordinary Shares of the Company.
Following Admission, the Company will have 13,839,470,432 Ordinary Shares in issue with voting rights. The Company does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The aforementioned figure of 13,839,470,432 Ordinary Shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the disclosure requirements applicable to the Company.
Zaza Mamulaishvili, President and Chief Executive Officer, commented:
"We are pleased that we have been able to negotiate with Yorkville a substantially better conversion price relative to what it would have been entitled to taking into consideration the pricing period applicable to the current conversion. We appreciate Yorkville's good faith and constructive approach towards this conversion."
The Company notes that there was an error in the announcement of 19 September 2017 in respect of the number of outstanding Convertible Shares held by YA which was incorrectly stated as 6,000 rather than the 6,400. For the avoidance of doubt, following the conversion above, YA holds 5,600 Convertible Shares.
Enquiries:
Frontera Resources (713) 585-3216
Zaza Mamulaishvili
info@fronteraresources.com
Cairn Financial Advisers LLP +44 (0) 20 7213 0880
Jo Turner / Liam Murray
WH Ireland Limited +44 (0) 207 220 1666
James Joyce / Alex Bond
Yellow Jersey +44 (0) 203 735 8825
Tim Thompson
Harriet Jackson
Henry Wilkinson