BioProspect has sold 25.58% of its holding in Frontier Oil...

BioProspect has sold 25.58% of its holding in Frontier Oil Corporation (FOC) for $1.79 million, valuing its remaining stake in the Philippines company at about $5.2 million.

Proceeds from the sale will be used to pursue one or more opportunities the company is currently investigating in its core biotechnology space.

It will also be used to restructure the Convertible Notes on issue by redeeming those Notes which are close to expiry and extending the balance until June 2015.

BioProspect is in the process of acquiring a 35% interest in FOC, by exchanging its 50% stake in Frontier Gasfields for 430 million new FOC shares.

Following the transaction, it will retain a 26% stake in FOC.

FOC expects the share sale transaction to be completed in about eight to 10 weeks and to complete its initial public offering on the Philippines Stock Exchange in the fourth quarter of this year.

FOC holds a 100% stake in the onshore Service Contract 52, Luzon Island, which contains the Nassipping-2 gas appraisal well and the majority stake in SC50, offshore Palawan, which holds the Calauit oilfields.

BioProspect proposes to redeem those Convertible Notes with a combined face value of $1.2 million that were due to expire in August and September of this year.

All outstanding interest on all the Convertible Notes, including the Convertible Notes to be redeemed, will be capitalised and converted into new Convertible Notes.

The remaining Convertible Notes (including the Notes derived from the capitalisation of the interest) will be extended until 30 June 2015. The Notes will pay interest at a rate of 8% with all interest to be paid in cash or capitalised at BPO’s election.