Shares outstanding: 30.5 Million
Symbol & exchange: FGE-V
MONTREAL, May 6 /CNW Telbec/ - Forest Gate Energy Inc. ("Forest Gate" or the "Company") reports that it has completed a non-brokered private placement and has issued 1,324,000 units ("Unit") at a price of $0.25 per Unit, for total gross proceeds of $331,000. Total shares outstanding following this private placement will be 30,528,173.
Each Unit consists of one common share ("Share") and one half common share purchase warrant allowing the holder to subscribe for one Share at a price of $0.40 for a period of two years from the subscription date ("Warrant"). The Units will be subject to a four-month hold period.
The Company paid $16,250 in commissions and finder's fees, and issued 65,000 broker Warrants in connection with this private placement, in accordance with the rules and regulations of the TSXV.
The Company intends to utilize the proceeds from the private placement to finance the Company's operations in Utah and for working capital purposes.
In other news, subject to TSXV approval the Company has agreed to issue 1,504,962 common shares to Blue Note Mining Inc. ("Blue Note") at a deemed price of $0.20 each. These shares are being issued in settlement of a debt of $300,992.41 reflected in the Company's audited annual financial statements as at December 31, 2009. The debt results from Blue Note's payment of various invoices on the Company's behalf. The common shares issued to Blue Note will be subject to a four-month hold period.
About Forest Gate Energy
Forest Gate Energy Inc. is a publicly listed oil & gas exploration and production company trading on the TSX Venture Exchange under the symbol FGE with 30.5 million shares outstanding. The Company is seeking to increase shareholder value through participation and development of oil & gas exploration and production projects in Canada and internationally.
Certain statements regarding Forest Gate, including management's assessments of future plans and operations and Forest Gate's anticipated financial performance, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Forest Gate's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.
Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Forest Gate's various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release. This transaction is subject to TSX Venture Exchange Approval.
SOURCE Forest Gate Energy Inc.
For further information: For further information: Robert Kramberger, V-P, Investor Relations, 1-866-666-3040, email@example.com; www.forestgate.ca