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Frontera clarifies that it could be a zero but the stupidest investors on planet earth somehow see this as good news

By Tom Winnifrith, The Sheriff of AIM | Monday 15 October 2018

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Frontera Resources (FRR) has been forced to issue a clarification statement about the Cayman Islands legal case that could see it lose all its assets and go to zero. I suspect AIM is forcing its hand here, concerned that the stupidest shareholder list on this planet are just not getting the message.

Of course, Frontera is already involved in two court cases. One, with the Georgian Government, could see its licenses rescinded. The second is with death spiral provider YA and could see it having to find $2.65 million (and rising) PDQ. Since it has no cash that is a problem. But is the latest court case which is the killer.

On Friday the company fessed that Outrider Master Fund LP, the provider of most of Frontera’s debts, had gone to the courts in the Cayman Islands seeking security for its loans, i.e. title to all of Frontera’s assets, claiming that the company was in default.

Today Frontera doubled down saying that it has filed a counter action against Outrider and also against Stephen Hope who sits on the Frontera board as Outrider’s representative claiming that Hope is in breach of his fiduciary duties as a director.

Well this is simple. If Outrider has a valid claim for seeking security Hope has done nothing wrong. If it has no valid claim he has.  So far Frontera has managed to get an injunction stopping Outrider taking immediate possession of the assets but an injunction is a temporary measure by definition. In due course a full case will be heard and given the cack-handed way Frontera managed its legals against YA you’d be foolish to bet on it winning that case.

Meanwhile why would any major contemplate doing a farm out deal with Frontera when not one but, now, two court cases threaten its title on the assets in question?

At 0.395p (up a tad on this news) the market cap is £61 million yet this company is drowning in debt, has no cash and could just lose every single asset it has. Clearly its shareholders are so thik they just do not get it and if you wanted proof of that here is one demented poltroon from the ADVFN asylum in action last night:

willhewonthe14 Oct '18 - 23:55 - 21342 of 21358              

Everything WShak says is true guys. Except it's his fucking fantasy land. He and TW are so desperate to have another CTAG moment lol .fuck me a blind man could see a 1 dollar watch from Hong Kong was not the way forward but hey no they suckered people in right up to 24p the poor sods.

WShak is fucked. Today he says look at my Twitter lol...yeah except your deleted tweets are fucking deleted numb nuts..texts too...probably e mails to TW and YA also...

The panic at TW towers on the 3rd of September is legendary. WShak shredded Kempster shredded..these cunts have finally been caught...and were loving it loving it loving it we're loving it like fuck....

WShak will be proved a liar and fraudster. TW already is for fuck sake.

Jaknife Kempster too... Twatted the lot of them haha...


Well no shredding here. If this poltroon things Cloudtag was the major, or only, fraud I have busted he truly is ignorant. Waseem has deleted no tweets, this idiot just lives in la la land and will become even poorer as these shares, in the end, trend to 0p.

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