Gale Force preferred shareholders convert into common shares
DALLAS, TX, Oct. 11, 2013 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company") announces that a total of 8,445,745 preferred shares in the capital of the Company have been converted into common shares leading up to the October 9, 2013 record date for voting at the Company`s Annual Meeting of the Shareholders scheduled to be held on November 21, 2013 (the "Meeting").
All series of preferred shares of the Company are convertible into common shares on a one-for-one basis. Of the preferred shares converted, 3,058,354 were Series I preferred shares, 3,686,364 were Series II preferred shares and 1,763,004 were Series III preferred shares. As a result of such conversions, there are now 74,119,064 common shares and 15,036,996 Series III preferred shares outstanding. There are no longer any Series I or Series II preferred shares outstanding.
The Series I preferred shares and most of the Series III preferred shares were converted by shareholders who are either members of the Board or management of the Company, consultants to the Company or investors who have representatives on the Company's Board, with a view to enabling such shareholders to exercise their votes at the Meeting. The Series II preferred shares were converted by Iroquois Capital Opportunity Fund ("Iroquois"), which, according to it, currently holds 8,638,864 representing only 11.7% of the common shares issued and outstanding. Together with joint actors, according to Iroquois, it owns or controls only 9,577,500 common shares representing only 12.9% of the voting shares.
The Company acknowledges that Iroquois has announced its hiring of Kingsdale Investor Services to act as its proxy solicitation firm. As a result, the Company is considering hiring its own proxy solicitation firm to protect the interests of shareholders at the upcoming Meeting, despite having been contacted by dozens of shareholders who have universally and overwhelming expressed their support for the current Board and its plan to pursue a strategic transaction.
"Gale Force would much prefer to avoid the distraction being caused by Iroquois, and the associated costs, and to instead focus our time and attention on continuing to grow our business and negotiating the best strategic transaction for our shareholders," said Michael McLellan, Co-Chairman & Chief Executive Officer. "It is obvious to all that Iroquois is attempting to derail the strategic review process for its own purposes and to usurp control of the Company without paying a control premium."
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped 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, Tennessee and West Virginia.
Neither the 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.
SOURCE GALE FORCE PETROLEUM INC.