Oil and gas company executes sec lending agreement
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Oil and gas company executes sec lending agreement 25 July 2012Calgary Reporter: Mark Dugdale
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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.
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