There were 80,400,916 number of shares on issue as at 30.07.2017 (Source: Frontier ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 – Release date: 29/09/17 16:26)
Since 30.07.2017 Frontier raised $405,890 through the issue of 23,875,883 shares at an issue price of 1.7¢ per share (Source: Quarterly Activities Report - Release Date: 30/10/17 16:20
On Friday we received an announcement that Forise Investments have agreed to a A$6 million placement in which they will subscribe for A$6 million worth of new Frontier shares at A$0.016 per share (375,000,000 new shares with an attaching option on a 1:2 basis (187,500,000 2-year term Options exercisable at A$0.029). This would represent 78% of total shares on issue post placement and 84% fully diluted.
Based on the above, I see the number of shares on issue on March 15th as follows (subject to approval at the meeting on March 15th):
80,400,916
23,875,883
375,000,000
479,276,799
FNT should have a cash balance of over A$6 million on March 15th if the Forise Investments placement/takeover/joint venture goes ahead and is approved on March 15th. In addition there should be cash and cash equivalents of A$242,000 (Source: Quarterly Cashflow Report - Release Date: 30/10/17 16:19) plus the value of plant and equipment of A$265,028 (Source: Frontier ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 – Release date: 29/09/17 16:26).
A$6,000,000
A$242,000
A$265,028
A$6,507,028
A$6,507,028 divided by 479,276,799 shares means that FNT’s SP will thus be worth .0136 on March 15th. At the close of trading on Friday the SP was .017. Mulitplying .017 by the number of shares that will be on issue on March 15th,,I calculate a market capitalization for FNT of A$8,147,706. Therefore the market is currently calculating that FNT’s exploration licences are worth only A$1,640,678 (A$8,147,706 minus A$6,507,028).
If the above calculations are all correct, FNT’s SP will have a cash and asset backed SP value of .0136 on March 15th. IMHO, if FNT continues exploration with the A$6 million that Forise Investments brings to the table, and if at least one of the upcoming drilling programs and/or projects bears fruit, this should see the SP move substantially higher.
I look forward to your own analysis and/or comments.
Thanks and cheers!
MB
P.S. Please note that every post that I make on HC is based on factual information obtained personally by me, or given personally to me by totally reliable and vetted sources. HC posts from me may also contain my own personal opinion. Therefore all readers must do their own research before buying or selling any stock.
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