By Devika Patel
Knoxville, Tenn., July 7 - Frontera Resources Corp. said it raised $23.5 million in a private placement of unsecured convertible notes.
The notes mature in July 2013 and carry a 10% coupon. They will be convertible into common shares at an initial conversion price of $2.14 per share, subject to adjustment.
The notes will be automatically converted into common shares if the stock's sale price exceeds two times the conversion price for at least 20 consecutive trading days.
Investors also received warrants for a number of common shares equal to 7.5% of the shares into which their notes are convertible. The warrants are exercisable at $3.50 for five years.
Proceeds will be used to continue to advance ongoing work programs throughout Frontera's primary business units within its Block 12 license area in the country of Georgia.
Frontera is an independent oil and gas exploration and production company with headquarters in Houston.
| Issuer: | Frontera Resources Corp.
|
| Issue: | Unsecured convertible notes
|
| Amount: | $23.5 million
|
| Maturity: | July 2013
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $2.14
|
| Warrants: | For 7.5% of the shares into which the notes are convertible
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.50
|
| Settlement date: | July 7
|
| Stock symbol: | London: FRR
|
| Stock price: | 102.5p at close July 4
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
