Gale Force Petroleum wraps C$5 million placement of shares, preferreds

Financing with investor Iroquois Capital Opportunity priced at C$0.22

By Devika Patel

Knoxville, Tenn., May 5 - Gale Force Petroleum Inc. said it took in C$5 million in a private placement of stock and preferred stock.

The company sold 14,090,909 common shares at C$0.22 per share and 8,636,364 series II preferred shares at the same price, which is an 18.52% discount to the May 4 closing share price, C$0.27.

The preferreds were sold to Iroquois Capital Opportunity Fund. The preferreds are non-voting, pay no dividend and are convertible into common shares on a one-for-one basis.

Based in Montreal, Gale Force Petroleum sells oil that it produces from wells located in Manitoba.

Issuer:	Gale Force Petroleum Inc.
Issue:	Common stock, series II preferred stock
Amount:	C$5 million
Price:	C$0.22
Warrants:	No
Settlement date:	May 5
Stock symbol:	TSX Venture: GFP
Stock price:	C$0.27 at close May 4
Market capitalization:	C$5.69 million
Common stock
Amount:	C$3.1 million
Shares:	14,090,909
Preferreds
Amount:	C$1.9 million
Preferreds:	8,636,364
Conversion ratio:	Into 8,636,364 shares
Investor:	Iroquois Capital Opportunity Fund

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