1 Feb 2016 07:00
Houston, Texas, U.S.A. - 1 February 2016
Frontera Resources Corporation
("Company")
Issue of Equity
Frontera Resources Corporation (AIM: FRR), an independent oil and gas exploration and production company, today announces that it has drawn down on its previously announced Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd in the amount of US$1,084,909.07 (approximately £755,000) (the "Draw Down"). The Draw Down has been undertaken at a price of £0.004857 per share in accordance with the terms of the SEDA, and will result in the issue of 155,453,075 new ordinary shares of US$0.00004 each in the Company ("New SEDA Ordinary Shares"). This funding will be used to advance work programs of the Company and to reduce corporate debt of the Company.
In addition, the Company has issued 31,602,132 new ordinary shares in the Company ("New Ordinary Shares") in settlement of approximately US$226,000 fees due to certain unrelated third parties for services provided to the Company.
Application has been made for the New SEDA Ordinary Shares and the New Ordinary Shares to be admitted to trading on AIM, which is anticipated to occur on 4 February 2016 ("Admission"). The New SEDA Ordinary Shares and the New Ordinary Shares will rank pari passu with existing shares of common stock of the Company.
Following Admission, the Company will have 3,511,348,030 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 3,511,348,030 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.
Enquiries:
Frontera Resources Corporation:
Liz Williamson
Vice President, Investor Relations and Corporate Communications
+1 713 585 3216
lwilliamson@fronteraresources.com
Nominated Adviser:
Cairn Financial Advisers LLP
61 Cheapside, London EC2V 6AX
Avi Robinson / Jo Turner
+44 (0) 20 7148 7900
Broker:
Cornhill Capital Limited
Nick Bealer
+44 (0) 207 710 9610
Financial PR:
Buchanan
Helen Chan
+44 (0) 20 7466 5000
helenc@buchanan.uk.com