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
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
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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