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LONDON (Alliance News) - Gunsynd PLC on Thursday said it is about to receive a stake in Oyster Oil & Gas Ltd's operating unit, in settlement of a loan issued to Oyster by Gunsynd.
Shares in the Gunsynd were trading 15% higher to 0.058 pence each.
Gunsynd, noting the increase in its share price, said that Oyster Oil & Gas will hold a shareholder meeting on Friday, where investors will vote to approve the deal.
Under the previous agreement between the companies, Gunsynd and Northbay Capital Partners Corp, both creditors of Oyster, will receive settlement of an outstanding loan by gaining the entire share capital of Oyster's operating unit.
Oyster's production sharing contracts in Madagascar and Djibouti are held through the operating unit.
In July 2017, Gunsynd loaned GBP250,000 to Oyster Oil & Gas. The company's loan represents 30% of the total CAD1.4 million - GBP822,986 - outstanding loan owed to both Gunsynd and Northbay Capital.