MONTREAL, Aug. 25 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture:
GFP, the "Corporation") today released an announcement regarding the status of
its restructuring and clarifying its plans for the future.
Due to a lack of resources, the Corporation has very little time to find
a solution to continue as a going concern. Shareholders should be aware of the
significant and imminent risk of bankruptcy.
The Corporation wants investors to be aware of the following facts:
- The Corporation has zero remaining sources of cash resources and is
insolvent. Operations have been reduced to the minimum and are being
funded tentatively by deferred compensation to employees, by
shareholder advances and by minimal increases in the secured
loan to maintain asset value.
- The Corporation intends to file for bankruptcy in the coming weeks
or months unless it can obtain new financing or sources of cash;
- The Corporation will not be able to obtain new debt financing
because it holds a $2 million first-rank loan secured by all assets
of the Corporation;
- The Corporation will not be able to obtain new equity financing at
current market prices. Regulations do not permit the Corporation to
issue shares below the price at market.
"The Corporation faces numerous obstacles to remain a going concern",
said Michael McLellan, Chairman and CEO. "Amongst other operational
difficulties, at current market prices for the Corporation's shares, the
Corporation will apparently be unable to obtain equity financing, which
practically assures the Corporation has no chance of survival".
Forward looking statements:
Statements included herein, including those that express management's
expectations or estimates of our future performance, constitute
"forward-looking statements" within the meaning of applicable securities laws.
Forward-looking statements are based on assumptions and estimates that are
subject to various risks and uncertainties including but not limited to the
risks disclosed under the heading "Business Risks" in the Corporation's most
recent Management Discussion and Analysis for the annual exercise ended June
30, 2008 available on SEDAR.
"The TSX Venture Exchange has not reviewed this release and therefore
does not accept responsibility for its adequacy or accuracy."
For further information:
For further information: Michael McLellan, Chairman and CEO, (514)