Gale Force Petroleum Inks Agreements to Settle $712,250 in Debts
Gale Force Petroleum Inc. has signed agreements with trade creditors to settle debts totaling $712,250 by the issuance of 1,424,500 common shares of the Corporation at a price of $0.50 per share. The shares to be issued will be subject to a four-month hold period.
"We very much appreciate the support of these creditors, and I think it demonstrates a belief in the prospects of the Corporation by our suppliers, who are people inside the industry who know the industry best," said Michael
McLellan, President and Chief Executive Officer.
"This issuance of shares for debts significantly reduces our short-terms debts and brings us close to finalizing the clean-up of our balance sheet in accordance with the restructuring initiated by the Corporation last year. Also, issuing shares for debt comes with a much lower cost of capital and less dilution than by raising funds from equity via a private placement."