LONDON (Alliance News) - Gunsynd PLC on Monday said it has raised GBP500,000 in gross proceeds to make progress on potential investment opportunities.
The natural resources-focused investment company has issued 1.35 billion shares at 0.037 pence per share. Shares in the company were trading 25% lower at 0.038 pence each.
Gunsynd Chair Hamish Harris said: "The recent movement in the share price has allowed us to raise money on a far less dilutive basis to shareholders. Not only that but it has increased the opportunities within our own portfolio, not least with respect to the Madagascar oil and gas licence. Rather than being heavily diluted by third-party investors, we can now look at a wider range of options with respect to progressing work on the block".
Despite Monday's decline, Gunsynd shares have almost doubled since the beginning of May.
Separately, Gunsynd said Oyster Oil & Gas Ltd shareholders have approved the sale of all of the company's stake in operating subsidiary, Oyster Oil & Gas Ltd, to settle indebtedness owing to Northbay Capital Partners Corp, Gunsynd, and other creditors, primarily being directors of Oyster.
"Whilst our investment in Oyster has not been without difficulties, we are now in a much stronger position in terms of equity than we were previously. We have always maintained our belief in the quality of the Madagascar licence and are now in a much stronger position to pursue a course of action that would be advantageous to Gunsynd shareholders," said Gunsynd's Harris.
Gunsynd (GUN)