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Frontera Energy acquires 101,316,916 common shares of CGX Energy.

International Resource News-March 15, 2019--Frontera Energy acquires 101,316,916 common shares of CGX Energy

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International Resource News - 15 March 2019

Frontera Energy Corporation (TSX: FEC), an explorer and producer of crude oil and natural gas, with operations focused in South America, has acquired 101,316,916 common shares of CGX Energy Inc. in connection with the rights offering.

The aggregate purchase price for the common shares was USD25,329,229. As consideration for providing a standby commitment in connection with the Rights Offering, the company also received 15,009,026 5-year warrants to purchase up to 15,009,026 common shares at an exercise price equal to CAD0.415 per Common Share.

Prior to the issuance of the common shares and the warrants, the company owned or exercised control over 56,066,213 common shares on a non-diluted basis (representing around 48.29 percent of the issued and outstanding common shares on a non-diluted basis) and 96,066,213 common shares on a partially-diluted basis, assuming the conversion of the USD8,800,000 bridge loan, but excluding the rights to acquire common shares under the rights offering then held by Frontera (representing approximately 61.54 percent of the issued and outstanding Common Shares on a partially-diluted basis). Immediately after the issuance of the Common Shares and Warrants, the company owns or exercises control over 157,383,129 Common Shares on a non-diluted basis (representing approximately 67.78 percent of the issued and outstanding Common Shares on a non-diluted basis) and 212,392,155 Common Shares on a partially-diluted basis, assuming the exercise or conversion of the Warrants and the USD8,800,000 bridge loan (representing approximately 73.95 percent of the issued and outstanding Common Shares on a partially-diluted basis), resulting in a 12.41 percent increase in Frontera's holdings of Common Shares on a partially-diluted basis.

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Publication:International Resource News (IRN)
Date:Mar 15, 2019
Words:337
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