- Consultancy services company Science Group urged Frontier Smart Technologies, in which it has accumulated a 47.6% stake, to pursue a refinancing deal to eliminate the risk of it breaching its debt covenants.

Science Group also announced that its two suggested nominations to Frontier's board -- Martyn Ratcliffe and Sarah Cole -- would not accept the role of director until Frontier's financial issues had been addressed.

The company said it had requested to speak directly to Frontier's lender, Clydesdale Bank, but this had not been possible to date.

'In Science Group's opinion, Frontier would benefit significantly from a refinancing to eliminate the bank covenant risk and provide the financial stability that Frontier requires,' it said.

'Science Group has provided an outline structure of a possible refinancing to Frontier.'

'However, despite the seriousness of the situation, the Frontier board has not engaged with Science Group on this matter in any meaningful way.'

Earlier on Wednesday, Frontier said it would embark on a cost cutting plan amid a risk that it could breach its current debt covenants.

Frontier also said costs associated in warding off a takeover bid from Science Group and engaging with another interested party were currently in the order of 450k. At 1:09pm:

[LON:FST] Frontier Smart Technologies Grp Ltd share price was -3.5p at 27.5p

[LON:SAG] Science Group share price was 0p at 193.5p

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