The investment agreement provides that Lonestar will acquire about 2,750,000 shares of TBX’s 2011 Series A 8% preferred stock for the sum of $5,500,000 contingent upon TBX using the proceeds of the stock purchase to acquire a majority (51%) interest in Frontier Income and Growth.
Frontier currently operates eight permitted disposal wells and 20 disposal tank trucks in a service area primarily located in east Texas and north eastern Louisiana.
In addition, TBX has signed two additional agreements including a subscription agreement between TBX and Frontier, and an agreement between TBX and Frontier Asset Management (FAM)
Under the first agreement, Frontier agreed to sell to TBX 51% of its equity membership interests for an amount about $5.5m.
As per the second agreement, TBX agreed to acquire certain contract rights held by FAM in the profits of Frontier.
US based Frontier is a salt water transportation and disposal company.
