Oil and gas company executes sec lending agreement
25 July 2012 Calgary
Image: Shutterstock
Oil and gas company CYGAM Energy, which is based in Canada, has executed a securities lending agreement (SLA) with one of its controlling shareholders.
Under the SLA, the company has borrowed 200,000 common shares from Peyto Exploration & Development Corp on a non-interest bearing, unsecured basis.
CYGAM must return the shares to Peyto Exploration & Development within 270 days of the date of the SLA, or following a financing or sale of assets by CYGAM yielding cash proceeds in excess of $5 million.
It plans to use the shares as collateral under its credit arrangement with a recognised Canadian financial institution. It wants to secure funds of up to 50 percent of the market value of the shares for ongoing capital requirements and general working capital purposes.
Under the SLA, the company has borrowed 200,000 common shares from Peyto Exploration & Development Corp on a non-interest bearing, unsecured basis.
CYGAM must return the shares to Peyto Exploration & Development within 270 days of the date of the SLA, or following a financing or sale of assets by CYGAM yielding cash proceeds in excess of $5 million.
It plans to use the shares as collateral under its credit arrangement with a recognised Canadian financial institution. It wants to secure funds of up to 50 percent of the market value of the shares for ongoing capital requirements and general working capital purposes.
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