17th Sep 2018 09:49
LONDON (Alliance News) - Frontera Resources Corp said Monday that it received a demand for USD2.7 million from YA II PN Ltd over failure and refusal to convert preferred shares into ordinary shares.
Shares in the oil and gas company were trading 9.3% lower at 0.31 pence each.
The company said it "vigorously disputes the validity of both the conversion notices and the purported default notice, and is continuing to investigate YA II PN's actions in that regard". It also reiterated that it has "serious concerns as to the validity of the conversion notices and the calculations" and therefore did not take any action pending an investigation.
As a result of Frontera's refusal to convert the shares, the investment company sent a purported notice of default stating that "the company's failure to convert preferred shares in accordance with the conversion notices constituted a "triggering event" under the terms applicable to the preferred shares".
It is therefore demanding cash payment of 2,650 preferred shares at a liquidation amount of USD2.7 million.
At the end of August, YA II sent a conversion notice in respect of 241 series A preferred convertible shares. The ordinary shares to be issued following conversion amounted to 82.1 million.
Subsequently at the beginning of September, YA II issued a further conversion notice for 241 series A shares for 93.8 million ordinary shares.
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Frontera Resources