- Frontera Energy Corporation (FEC) has announced the results of its oversubscribed substantial issuer bid to cancel up to $65 million worth of its common shares
- The offer closed yesterday with a purchase price between $11.00 to $13.00
- 5.84 per cent of the company’s total shares will be bought and cancelled
- Frontera is a Canada-based company focused on the exploration, development, production and sale of oil and natural gas in South America
- Frontera Energy Corporation (FEC) is down 4.82 per cent and is trading at $10.86 per share as of 12:57 a.m. ET.
Frontera Energy (FEC) has announced the results of its oversubscribed substantial issuer bid.
Under the bid, the company offered to purchase up to $65 million worth of its outstanding common shares.
The offer, which expired at 11:59 p.m. (Eastern time) on August 8, was completed through a modified Dutch auction procedure with a price range from $11.00 to $13.00 per share.
“The company looks forward to completing the offer in the coming days and anticipates recommencing share repurchases under its [normal course issuer bid] on August 10th, 2022,” Gabriel de Alba, Frontera’s chairman of the board, said.
Frontera stated it expects to purchase approximately 5.42 million shares, representing roughly 5.84 per cent of its total shares, for $12.00 per share and will subsequentially be cancelled. Frontera anticipates that approximately 87.26 million shares will be left issued and outstanding.
According to the company, shareholders who made auction tenders will have the number of shares purchased prorated following the determination of the final results of the offer.
Frontera shared it will purchase approximately 83.30 per cent of tendered shares from said shareholders. Shareholders who made auction tenders at a price more than the purchase price should not expect to have any of their shares purchased by the company.
Frontera is a Canada-based company involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America.
Frontera Energy Corporation (FEC) is down 4.82 per cent and is trading at $10.86 per share as of 12:57 a.m. ET.