Subject to approval by the Toronto Stock Exchange (TSX) Canadian oil and gas Exploration Company CGX Energy Inc. has settled its debt to majority shareholder Frontera Energy Corporation through the sale of a percentage of its common shares. Frontera therefore could in the near future own 61.5% of CGX.
CGX announced on Monday that the two companies have entered into a debt settlement agreement with respect to US$1,200,000 owed to Frontera by CGX. The debt is to be settled through the issuance of 5,714,285 common shares of CGX at a rate of US$0.21 per Common Share.
CGX, which does not have sufficient cash to repay its debt has offered the shares at a 25% discount to the closing price of the Common Shares on the TSX Venture Exchange (the “TSXV”) on December 14, 2018.
