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CALGARY, Oct. 27 /CNW/ - Arrow Energy Ltd. (TSX Venture: AOF) ("Arrow" or the "Company") announces that it intends to seek regulatory approval to complete a private placement of up to 15,000,000 common shares at a price of $0.05 per common share for gross proceeds of $750,000. As previously announced, the Corporation intends to complete a share consolidation on the basis of one (1) new share for four (4) existing shares and to change its name to "Kallisto Energy Corp.". The proposed share consolidation and name change are subject to acceptance by the TSX Venture Exchange. If the consolidation is approved, the private placement will be for up to 3,750,000 common shares at a price of $0.20 per share for gross proceeds of $750,000.
The Company expects that insiders will participate in the private placement. Proceeds from the financing will be used to fund the initial wells of the Company's Pembina drilling program and for general corporate purposes. The private placement is expected to close on or about November 6, 2009. The securities issued pursuant to the private placement will be subject to a four-month hold period. Following completion of the private placement, assuming completion of the previously-announced asset acquisition and the share consolidation, the Company will have an aggregate of up to 13,635,932 common shares issued and outstanding.
Arrow is a Calgary-based junior resource company engaged in the exploration, development and production of natural gas and oil primarily in Alberta.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE ARROW ENERGY LTD.
For further information: For further information: Robyn Lore, President, Telephone: (403) 237-9996, Facsimile: (403) 264-0416