IT's Alive! FR PROVIDES CORPORATE UPDATE
International Frontier Resources Corp. has provided an update with regard to its proposed RTO (reverse takeover) transaction as outlined in its May 10, 2021, news release. IFR and PrivateCo continue to work toward the successful completion of the transaction and have negotiated substantially all of terms of the definitive agreement. IFR has also formally notified the Mexican energy regulator of its intent to transfer ownership of its Tecolutla Block. IFR is contractually required by the regulator to submit a formal joint notification in relation to the Proposed RTO transaction, and this submission was completed by IFR and the PrivateCo on March 14, 2022.
In addition, PrivateCo has provided a $300,000 (U.S.) working capital loan to IFR in the form of an interest-bearing, non-revolving unsecured line of credit. The loan has a term of one year and is forgivable if a definitive agreement in relation to the proposed RTO transaction is not signed by June 30, 2022. In addition, the $750,000 convertible debenture provided to IFR, by an entity with ties to the controlling shareholder of PrivateCo, has been reduced by $625,000 (U.S.) leaving a remaining balance on the convertible debenture of $125,000 (U.S.). Commencing on June 30, 2022, IFR has the option to convert the remaining balance of the debenture to IFR shares at a conversion price of the greater of either five cents per share or the deemed preconsolidated price of the common shares of IFR for the purposes of the proposed RTO transaction. The amended convertible debenture is subject to approval of the TSX Venture Exchange.
Further updates and particulars of the proposed RTO transaction will be provided upon IFR and PrivateCo entering into a definitive agreement.
Trading halt