Gallic announces proposed consolidation of its class A common shares

    GALLIC ENERGY LTD. (TSX Venture Exchange: GLE.A)

    CALGARY, June 15 /CNW/ - Gallic Energy Ltd. ("Gallic" or the "Company")
announced today that the holders of class "A" common shares (the "Common
Shares") will be asked at the Company's upcoming Annual General and Special
Meeting, to be held on July 8, 2009 (the "Meeting"), to authorize an amendment
to the Company's Articles to consolidate the Company's 157,729,232 Common
Shares on a basis of one (1) Common Share for every twenty (20) Common Shares
issued and outstanding. If the proposed consolidation is approved and given
effect, there will be approximately 7,886,462 Common Shares outstanding
post-consolidation. Any fractional Common Share(s) resulting from the
consolidation will be rounded to the nearest whole number.
    The board of directors of the Company believes that the Consolidation is
in the best interests of the Company as the reduced number of
post-consolidation Common Shares will be more appropriate given the Company's
current capitalization. It is anticipated that the proposed consolidation will
provide the Company with greater flexibility with respect to future
    The proposed consolidation resolution is set forth in the Company's
management information circular dated June 1, 2009 (the "Circular") which has
been mailed to the holders of Common Shares (the "Shareholders") and filed
under the Company's profile on the SEDAR website concurrent with the
dissemination and filing of this news release.
    The consolidation resolution to be considered at the Meeting requires the
approval of 66 2/3% of the votes casts by the Shareholders who are present in
person or by proxy at the Meeting. Upon receiving Shareholder approval, the
Articles of Amendment will be filed if and when deemed advisable by the board
of directors but no later than twelve (12) months from the date of the
Circular. The consolidation will be subject to the approval of the TSX Venture
    Gallic will not be changing its name in conjunction with the
consolidation. Detailed information concerning the consolidation can be found
in the Circular.


    Statements Completion of the proposed consolidation of the Company's
Common Shares is subject to a number of conditions, including but not limited
to, Shareholder approval, TSX Venture Exchange acceptance and the ability of
the Company to maintain its TSX Venture Exchange Tier Maintenance Requirements
post consolidation. There can be no assurance that the Common Share
consolidation will be completed as proposed, or on a specific date, or at all.
There can be no assurances that the market price of the consolidated Common
Shares will increase as a result of the proposed consolidation. The
marketability and trading liquidity of the consolidated Common Shares of the
Company may not improve as a result of the consolidation. The consolidation
may result in some Shareholders owning "odd lots" of less than 100 Common
Shares which may be more difficult for such Shareholders to sell or which may
require greater transaction costs per share to sell.
    This news release contains certain forward-looking information and
statements with the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "objective",
"confident", "might", "proposed" and similar expressions are intended to
identify forward-looking information or statements. In particular, but without
limiting the foregoing, this news release contains forward-looking information
and statements pertaining to the completion of the consolidation of the
Company's Common Shares, including: (i) the Company's ability to obtain
necessary approvals from the TSX Venture Exchange and the Company's
Shareholders; (ii) the Company's ability to maintain its TSX Venture Exchange
Tier Maintenance Requirements post consolidation; (iii) the anticipated result
of the consolidation; and (iv) other expectations, beliefs, plans, goals,
objectives, assumptions, information and statements about possible future
events, conditions, results or performance. Various assumptions were used in
drawing the conclusions or making the projections contained in the
forward-looking statements throughout this news release.
    The forward-looking information and statements included in this news
release are not guarantees of future performance and should not be unduly
relied upon. Forward-looking statements are based on current expectations,
estimates and projections that involve a number of risks and uncertainties,
which could cause actual results to differ materially from those anticipated
and described in the forward-looking statements. Such information and
statements involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking information or statements. These include,
but are not limited to, risks associated with fluctuations in the market price
of the Company's Common Shares, commodity price and exchange rate fluctuations
and uncertainties and risks relating to the outcome of the proposed
consolidation on the market price, marketability and liquidity of the
Company's Common Shares. The forgoing list of assumptions, risks and
uncertainties is not exhaustive. The forward-looking information and
statements contained in this news release speak only as of the date of this
news release, and the Company assumes no obligation to updated publicly or
revise any forward-looking information or statements, whether as a result of
new information, future events or otherwise, unless so required by applicable
securities laws.

    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.

For further information:

For further information: Mr. Mark Woods, President and Chief Operating
Officer, Tel: (403) 263-1105, Fax: (403) 265-4514,

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Gallic Energy Ltd.

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