LONDON (Alliance News) - Natural resources investor Gunsynd PLC said Monday it has reached a debt settlement agreement with Oyster Oil & Gas Ltd.
Shares in Gunsynd were up 38% at 0.029 pence on Monday.
Gunsynd invested GBP250,000 in Oyster, by way of a convertible loan, in July 2017.
Along with Northbay Capital Partners Corp, Gunsynd has reached a conditional agreement with Oyster to settle the total debt of CAD1.4 million - around GBP812,600 - owed to them by Oyster.
Under the agreement, Oyster's debt will be settled in exchange for the entire outstanding share capital of an Oyster subsidiary - also called Oyster Oil & Gas Ltd. The subsidiary holds Oyster's production sharing contracts in Madagascar and Djibouti.
Oyster's shareholders would need to approve the deal, as will the TSX Ventire Exchange.
The board of the Oyster subsidiary is still under discussion with an announcement to follow "in due course".
Alongside the convertible loan note, Gunsynd also has 2.3 million Oyster shares or a 5.3% stake.
Gunsynd (GUN)