Gale Force Petroleum Inc. (TSX Venture: GFP - News; 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."
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