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Frontera Acquires 45,083,314 Cgx Energy Common Shares In Connection With Rights Offering

Frontera Acquires 45,083,314 Cgx Energy Common Shares In Connection With Rights Offering

11/01/21, 11:37 AM
Industry
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Frontera Energy Corporation (TSX: FEC) ("Frontera" or the "Company"), the majority shareholder of CGX Energy Inc. (TSXV: OYL) ("CGX") announced today that it has acquired 45,083,314 CGX common shares ("Common Shares") in connection with a previously announced rights offering (the "Rights Offering") by CGX on September 24, 2021. The aggregate purchase price for the Common Shares was CAD$73,596,681 (or CAD$1.63 per Common Share). As consideration for providing a standby commitment in connection with the Rights Offering, the Company also received 5-year warrants (the "Warrants") to purchase up to 1,173,774 Common Shares at an exercise price equal to US$1.51 per Common Share (being the U.S. dollar equivalent of CDN$1.91).

Company Info

Company
Frontera
Company info
Frontera Energy Corporation is a Canadian public company involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets with interests in 39 exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in Colombia. Frontera is committed to conducting business safely and in a socially, environmentally and ethically responsible manner. If you would like to receive Frontera news releases via email as soon as they are published, please subscribe here: http://fronteraenergy.mediaroom.com/subscribe. Advisories Cautionary Note Concerning Forward-Looking Statements This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, the ability to obtain certain regulatory approvals) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: political developments in Colombia; timing on receipt of government approvals; fluctuations in foreign exchange or interest rates and stock market volatility and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 3, 2021 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. SOURCE Frontera Energy Corporation