Frontera Resources Corporation Update Regarding YA II PN, Ltd Matter (5391E)
October 19 2018 - 2:00AM
UK Regulatory
TIDMFRR
RNS Number : 5391E
Frontera Resources Corporation
19 October 2018
19 October 2018
Frontera Resources Corporation
(the "Company")
Update Regarding YA II PN, Ltd Matter
Frontera Resources Corporation (AIM: FRR), the European-focused
oil and gas exploration and production company, is pleased to
provide the following update regarding the earlier announced matter
with YA II PN, Ltd ("YA").
On 18 October 2018, the Company and YA have agreed to resolve
their differences as announced on 17 September 2018 and 19
September 2018 by way of restructuring the outstanding Series A
Preferred Convertible Shares ("Series A shares") redemption
schedule and retracting and releasing each other from mutual
claims, as described below.
Pursuant to the terms of the settlement, the remaining
outstanding 2,650 Series A shares will be redeemed commencing 1
November 2018, on a monthly basis, for which the Company will be
making cash redemption payments to YA of US $ 64,900 per month up
until 1 April 2019, then US $ 149,600 per month up until 1 July
2019, and then will make a lump sum redemption payment of US $
2,141,700 on 1 July 2019 to redeem all remaining outstanding Series
A shares. Once so redeemed, the Series A shares will be cancelled.
The Company has also the right to convert Series A shares into
ordinary shares instead of cash redemption and the right to pay
down in cash the entire redemption amount for the outstanding
number of Series A shares at any moment.
As part of the settlement, (i) the Company withdrew its claims
against YA as announced on 17 September 2018 and 19 September 2018,
(ii) YA cancelled its 30 August 2018 and 3 September 2018
conversion notices and withdrew its 12 September 2018 notice of
default, and (iii) the Company and YA mutually released each other
from claims relating to this disagreement.
Zaza Mamulaishvili, President and CEO, commented:
"I am very pleased with the way the Company has resolved its
disagreement with YA. The settlement terms are mutually workable
for both the Company and YA. As a result of this settlement, the
inconvenient overhang of monthly conversion has been removed which
should positively reflect on the Company's share price and market
position going forward. The Company is moving on with paying down
the remaining balance to YA by way of cash redemption and without
recourse to the conversions as was the case in the past."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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) 20 3411 1880
James Joyce / Chris Viggor
Yellow Jersey +44 (0) 203 735 8825
Tim Thompson
Harriet Jackson
Henry Wilkinson
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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