- Frontier Smart Technologies group and Science group made progress on their potential merger after striking several key agreements included a refinancing package that could help alleviate the pressure on Future.

Future warned that it may not meet covenants testing associated with the Clydesdale Bank credit facility in December.

Frontier said Science group, which was in the process of finalising a takeover of the company, agreed to the company's restructuring plan after deeming that it would not compromise the potential commercial benefits to be gained through a combination of the two businesses.

The restructuring process would incur significant costs in the current financial year but provide a structure aligned with the future strategy and profitability objectives of the company, Future said.

The company also said Science group had agreed to subscribe £1.0m for 4.0m shares in the company, taking its stake to 52%, to allow proposed director appointments to proceed.

Future also said finalising terms of an agreement with Science Group to make available a replacement credit facility, or 'standby facility', should the company considers it appropriate to repay or prepay the bank facility for any reason.

The standby facility would expire on 30 April 2022 and be on broadly the same terms and conditions as the Clydesdale facility.

The Frontier said it expected the covenant testing associated with the Clydesdale Bank credit facility would be met at the next test date in September 2019, but fall short of conditions at December 2019 testing.

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