(Alliance News) - Gunsynd PLC said Tuesday it has extended the deadline to complete the sale of its holding in Oyster Oil & Gas Ltd to Sajawin Pty Ltd.
The deadline has been extended to October 30 from April 30.
"If any of the conditions precedent are not satisfied by October 30, then either party may terminate the term sheet and the variation term sheet at which time the parties' rights and obligations under the Term Sheet and the variation term sheet will immediately cease and Gunsynd will immediately return the initial payments to Sajawin," Gunsynd added.
At the end of November, Gunsynd and Sajawin agreed to a term sheet, where Gunsynd is selling its 333 shares in Oyster for about GBP260,000.
Sajawin paid Gunsynd AUD39,151, about GBP20,000, following the signing of the original term sheet. Then Sajawin will owe Gunsynd AUD457,647 if the transaction completes.
The transaction is conditional on Sajawin completing due diligence on Oyster, completing a reverse takeover of a company on the Sydney stock exchange and completing a AUD1.5 million equity raising.
Gunsynd noted it has pledged to subscribe for AUD200,000 in shares as part of Sajawin's reverse takeover on the ASX.
If the deal goes through, Sajawin will own about 55% of Oyster.
By Paul McGowan; paulmcgowan@alliancenews.com
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Gunsynd (GUN)