Forest Gate Energy has completed the first tranche of a non-brokered private placement and has issued 1,118,500 units ("Unit") at a price of $0.15 per Unit, for total gross proceeds of $167,775. Total shares outstanding following this private placement will be 16,367,233.
Each Unit consists of one common share ("Share") and one common share purchase warrant ("Warrant"). Each Warrant allows the holder to subscribe for one Share at a price of $0.25 for a period of two years from the subscription date. The Units will be subject to a four-month hold period.
Forest Gate paid $16,777.50 in commissions and finder's fees, and issued 118,850 broker Warrants in connection with this private placement, in accordance with the rules and regulations of the TSXV. Conditional acceptance to this private placement was issued by the TSX Venture Exchange on September 29, 2009.
The Company intends to utilize the proceeds from the private placement for exploration and working capital purposes.
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