(Frontera Energy, 18.Dec.2018) — Frontera Energy Corporation announced the option for a Dividend Reinvestment Plan. As initially announced on December 6, 2018, Frontera has now adopted a Dividend Reinvestment Plan effective December 17, 2018 to provide shareholders of Frontera who are resident in Canada (Eligible Shareholders) with the option to have the cash dividends declared on their common shares of Frontera reinvested automatically back into additional Shares, without the payment of brokerage commissions or service charges.
Participation in the Plan is optional; shareholders of Frontera who do not wish to participate in the Plan will receive a cash dividend. Dividends are payable only as and when declared by Frontera’s board of directors.
Computershare Trust Company of Canada (the Agent) has been appointed as the agent for the Plan. Frontera will pay to the Agent all cash dividends which are to be reinvested on behalf of Eligible Shareholders participating in the Plan and the Agent will then use those funds to purchase additional Shares on behalf of participants. All Shares purchased under the Plan will be newly issued by Frontera from the treasury and purchased at 100% of the average market price of the Shares on the Toronto Stock Exchange (TSX).
Frontera may from time to time, in its sole discretion, offer a discount of up to 5% of the average market price for Shares purchased under the Plan. At this time, no discount is being offered.
To enroll in the Plan, Eligible Shareholders must contact the broker, dealer, bank or other market participant who holds their Shares and complete and submit an enrollment form before 4:00 p.m. (Eastern) on the fifth business day immediately preceding a dividend record date.
On December 6, 2018, Frontera’s board of directors declared a dividend of C$0.33 per Share, which will be paid on January 17, 2019 to shareholders of record at the close of business on January 3, 2019. Enrollment for the January dividend will commence on December 17, 2018 and will end on December 24, 2018.
The Plan is an “automatic securities purchase plan” under applicable securities laws. Eligible Shareholders that are insiders (as defined under applicable securities laws) or employees of Frontera or its subsidiaries may elect to participate in the Plan in order to permit the Agent to purchase Shares on their behalf during blackout periods under the Company’s insider trading policy, provided however, that such persons must give directions to participate, vary or terminate their participation in the Plan when they are not subject to a blackout period and must otherwise comply with any additional requirements imposed upon them by Frontera’s insider trading policy.
Proceeds received by Frontera from the issuance of Shares from treasury under the Plan will be used for general corporate purposes.
Additional information on the Plan including the Reinvestment Enrollment — Participant Declaration Form can be found on Frontera’s website at www.fronteraenergy.ca, on the Agent’s self-service web portal at www.investorcentre.com or by contacting your financial institution or investment advisor.
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