MONTREAL, Feb. 1 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture:
GFP) (the "Company") today announced that it has concluded a private placement financing
for gross proceeds of CA$1,080,302, through the issuance of 3,601,008
units ("Units") at $0.30 per Unit. Each Unit is comprised of one common share of the
Company and one common share purchase warrant with an exercise price of
$0.50, expiring July 31, 2012.
In connection with the private placement, the Company paid an aggregate
of $70,988 in commissions and issued an aggregate of 32,000 Units and
194,400 non-transferable broker's warrants ("Broker's Warrants") to members of the selling group and various other finders. Each
Broker's Warrant entitles its holder to acquire one Unit at an exercise
price of $0.30 at any time on or before July 31, 2012.
The selling group included All Group, BMO Nesbitt Burns, Canaccord
Capital, HSBC Securities (Canada), Odlum Brown and Raymond James, with
Kingsmont Investment Management acting as agent, all of which are at
arm's length from the Company.
All of the securities issued by the Company in connection with this
private placement are subject to resale restrictions which expire on
June 1, 2011.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and
exploiting undervalued oil and gas reserves in mature basins, bringing
operational expertise and capital to lower-risk, development-type
projects. The Company currently owns producing oil and gas properties
in Texas, Oklahoma and Tennessee.
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 the risks disclosed under the heading "Risks and
Uncertainties" in the Company's periodic filings on SEDAR, for example,
in its Management Discussion and Analysis for the year ended June 30,
2010. Such information contained herein represents management's best
judgment as of the date hereof based on information currently
available. The Company does not assume the obligation to update any
forward-looking statements, except as required under applicable law.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release."
SOURCE GALE FORCE PETROLEUM INC.
For further information:
Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030