NEW YORK, June 28, 2013 /CNW/ - Today, Iroquois Capital Opportunity Fund LP and Iroquois Master Fund Ltd., together with certain of their affiliates (collectively "Iroquois"), announced that they have formally requisitioned a special meeting of the shareholders of Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) in order to reconstitute the board of directors. Iroquois currently owns approximately 8.7% of Gale Force's outstanding common shares (together with preferred shares that can currently convert into a 9.9% aggregate ownership position) and has requisitioned the meeting with the goal of significantly enhancing Gale Force's shareholder value. Iroquois has requested that the special meeting be held on or before August 16, 2013, which provides the Gale Force with ample time to call and hold a meeting.
Joshua Silverman, a Managing Partner at Iroquois, said that "the overwhelming positive reaction of our fellow shareholders to our open letter to the board [dated April 25, 2013] has confirmed and reinforced our belief that Gale Force's shareholders are deeply dissatisfied with the company's board and management and, under their direction, the company's poor performance, poor corporate governance and poor communications with the investing public." Mr. Silverman further stated that "it is shocking that in the immediate aftermath of our letter to the board calling for, among other things, immediate action to improve the governance and visibility of the company and its intrinsic value, the company instead issued millions of stock options to its senior executives. The fact that the board thought it was appropriate to reward the very officers who are responsible for a precipitous decline in shareholder value with millions of 'at-the-market' options at a time when Gale Force's stock price was near its 12 month low is symptomatic of Gale Force's bad corporate governance."
The recent option grant coupled with the company's current and past poor performance and the continuing lack of any meaningful financial investment in the company by Gale Force's board and management strips them of any credibility. Iroquois believes it is time for a fresh start and that, when put to a vote, the vast majority of shareholders will echo that sentiment loudly and clearly by replacing the board with a new slate of directors with proven success in the oil and gas industry.
Mr. Silverman closed by saying that "the company's recent announcements in the wake of our letter demonstrate that in order to properly realize value for shareholders the status quo needs to be changed. Gale Force's recent moves come under the heading of 'too little, too late' our requisition proposes real change that we believe will finally yield real results for shareholders."
Detailed information on the nominees of Iroquois and the purpose and history leading up to the Requisition will be provided in the information circular that Iroquois will file on SEDAR prior to the requisitioned shareholders' meeting.
About Iroquois Capital Opportunity Fund LP
Iroquois Capital Opportunity Fund LP is a private equity fund focused on direct ownership of oil and gas assets, typically through joint venture opportunities with public and private E&P companies developing onshore oil and gas assets in North America .
About Iroquois Master Fund Ltd.
Iroquois Master Fund Ltd. is a privately pooled investment vehicle that is managed by Iroquois Capital Management, LLC. Iroquois Capital Management, LLC is headquartered in New York, New York.
SOURCE: Iroquois Capital Opportunity Fund LP
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