20th Jun 2019 14:24
(Alliance News) - Gunsynd PLC said Thursday that ZTR Acquisition Corp has transferred all shares in its subsidiary Oyster Oil & Gas Ltd to several creditors including Gunsynd, in settlement of outstanding debt owed.
Of the 1,000 shares issued, the natural resources investor will receive 225 shares.
Gunsynd first invested GBP250,000 in ZTR, by way of a convertible loan, in July 2017.
Along with Northbay Capital Partners Corp, Gunsynd has reached a conditional agreement with ZTR to settle the total debt of CAD1.4 million - around GBP812,600 - owed to them by ZTR.
Under the agreement, ZTR's debt would be settled in exchange for the entire outstanding share capital of its subsidiary Oyster. The subsidiary holds ZTR's production sharing contracts in Madagascar and Djibouti.
"We are now in a position to move forward with the asset after the general meeting and debt for equity swap. The immediate focus is for the project company to raise a small amount of money for working capital and a limited work programme with an eye to farming out to a larger partner for the drilling phase. Gunsynd, Northbay Capital and Subco are currently in discussions with parties regarding both financing and management of Subco," said Executive Chairman Hamish Harris.
Shares in Gunsynd were down 3.8% at 0.028 pence on Thursday.
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