TORONTO, Sept. 25, 2019 /CNW/ - CGX
Energy Inc. (TSXV: OYL) ("CGX") and
Frontera Energy Corporation (TSX: FEC) ("Frontera")
announced today that Frontera has elected to convert the principal
amount outstanding (US$8.8 million)
under its bridge loan facility due September
30, 2019 ("Bridge Loan").
As previously announced on December 4,
2018, December 17, 2018 and
February 1, 2019, the principal
amount outstanding under the Bridge Loan is convertible at a price
of US$0.22 per share (being the US
dollar equivalent of CDN$0.29, which
was the closing price of the common shares of CGX prior to the
December 4, 2018 announcement of the
amendment to the Bridge Loan).
As a result of conversion of the Bridge Loan, Frontera will
acquire an additional 40,000,000 common shares of CGX (representing
approximately 17.23% of the issued and outstanding common shares on
a non-diluted basis). Immediately prior to the conversion of the
Bridge Loan, Frontera beneficially owned and/or exercised control
or direction over 157,383,129 common shares (representing
approximately 67.78% of the issued and outstanding common shares on
a non-diluted basis), and if all convertible securities held by
Frontera were exercised, 212,392,155 common shares (representing
approximately 73.95% of the issued and outstanding common shares on
a partially-diluted basis).
Immediately following the conversion of the Bridge Loan,
Frontera will beneficially own and/or exercise control or direction
over 197,383,129 common shares (representing approximately 72.51%
of the issued and outstanding common shares on a non-diluted
basis), and if all convertible securities held by Frontera were
exercised, 212,392,155 common shares (representing approximately
73.95% of the issued and outstanding common shares on a
partially-diluted basis).
Frontera holds CGX common shares for investment purposes.
Frontera may, from time to time and depending on market and other
conditions, acquire additional common shares and/or other equity,
debt or other securities or instruments of CGX in the open
market or otherwise, and reserves the right to dispose of any or
all of the securities in the open market, by private agreement or
otherwise at any time and from time to time, and to engage in
similar transactions with respect to the securities, the whole
depending on market conditions, the business and prospects of CGX
or Frontera and other relevant factors. This press release is also
issued pursuant to National Instrument 62-103 - The Early
Warning System and Related Take-Over Bid and Insider Reporting
Issues, which requires a report to be filed on SEDAR
(www.sedar.com) containing additional information with respect to
the foregoing matters. To receive a copy of the early warning
report filed in respect of the above matters, please contact
Grayson Andersen as outlined
below.
Related Party Transaction
The transaction described herein is a related party transaction
under Multilateral Instrument 61-101 - Protection of Minority
Security Holders in Special Transactions ("MI 61-101")
as Frontera holds over 10% of the issued and outstanding common
shares of CGX. However, the regulations under MI 61-101 pertaining
to related party transactions do not apply to the conversion of the
Bridge Loan.
About CGX Energy:
CGX Energy is a Canadian-based
oil and gas exploration company focused on the exploration of oil
in the Guyana- Suriname
Basin.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS
RELEASE.
About Frontera:
Frontera Energy Corporation is a
Canadian public company and a leading explorer and producer of
crude oil and natural gas, with operations focused in South America. The Company has a diversified
portfolio of assets with interests in more than 40 exploration and
production blocks in Colombia,
Peru, Ecuador and Guyana. The Company's strategy is focused on
sustainable growth in production and reserves. Frontera is
committed to conducting business safely, in a socially and
environmentally responsible manner. Frontera's common shares trade
on the Toronto Stock Exchange under the ticker symbol
"FEC".
If you would like to receive News Releases via e-mail as soon
as they are published, please subscribe here:
http://fronteraenergy.mediaroom.com/subscribe.
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content:http://www.prnewswire.com/news-releases/cgx-energy-and-frontera-announce-conversion-of-bridge-loan-300924873.html
SOURCE Frontera Energy Corporation
