Forest Gate Energy Announces Non-Brokered Private Placement - issues common shares to settle convertible debt
May 11 2011 - 4:26PM
PR Newswire (Canada)
CALGARY, May 11 /CNW/ -- SYMBOL & EXCHANGE: FGE-V CALGARY, May
11 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) announces
that it will be undertaking a non-brokered private placement
whereby the Company intends to raise up to $300,000 through the
issuance of oil and gas "flow-through" units (the "Units") at a
price of $0.08 per Unit. Each Unit is comprised of one
"flow-through" common share in the share capital of the Corporation
and one common share purchase warrant of the Corporation, with each
warrant entitling the holder thereof to acquire one additional
common share in the share capital of the Corporation at an issue
price of $0.18 per share for a period of two years. The Units will
be issued pursuant to applicable prospectus and registration
exemptions and will be subject to a four-month hold period. The
Company may pay, where appropriate, commissions and finder's fees
in connection with this private placement, in accordance with
applicable securities laws and the rules of the TSX Venture
Exchange. It is anticipated that this financing will be completed
on or prior to close of business on May 16, 2011. This financing is
subject to the usual regulatory approvals. The proceeds will
primarily be used to incur eligible expenditures on Forest Gate's
oil and gas properties situated in Canada. The Corporation has also
issued a total of 5,405,400 common shares to Jones, Gable &
Company Limited in order to pay the principal amount of $675,675
owing under a convertible debenture that the Corporation issued in
January 2010. The shares were issued at the conversion price
provided for in the convertible debenture, namely $0.125 per
share. The Corporation expects to issue, subject to the prior
acceptance of the TSX Venture Exchange, up to an additional 712,000
common shares at an issue price of $0.125 per share in order to pay
a portion of the accrued and unpaid interest on the foregoing
debenture. As a result of the issuance of the common shares to
Jones, Gable, the Corporation has 64,686,464 common shares issued
and outstanding. About Forest Gate Forest Gate Energy Inc. is a
publicly listed oil and gas exploration and production, and
non-energy resource company trading on the TSX Venture Exchange
under the symbol FGE. The Corporation is seeking to increase
shareholder value through participation and development of energy
and other resources in Canada and internationally. FORWARD-LOOKING
STATEMENTS Certain statements regarding Forest Gate, including
management's assessments of future plans and operations and Forest
Gate's anticipated financial performance, may constitute
forward-looking statements under applicable securities laws and
necessarily involve known and unknown risks and uncertainties, most
of which are beyond Forest Gate's control. These risks may cause
actual financial and operating results, performance, levels of
activity and achievements to differ materially from those expressed
in, or implied by, such forward-looking statements. Such factors
include, but are not limited to: the impact of general economic
conditions in Canada and the United States; industry conditions
including changes in laws and regulations including adoption of new
environmental laws and regulations, and changes in how they are
interpreted and enforced; competition; the lack of availability of
qualified personnel; fluctuations in commodity prices; the results
of exploration and development drilling and related activities;
imprecision in reserve estimates; the production and growth
potential of Forest Gate's various assets; fluctuations in foreign
exchange or interest rates; the ability to access sufficient
capital from internal and external sources; and obtaining required
approvals of regulatory authorities. This news release does not
constitute an offer to sell or a solicitation of an offer to buy
any of the securities in the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or
any state securities laws and may not be offered or sold within the
United States or to United States Persons unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available. This news release is
not for distribution to United States newswire services or for
dissemination in the United States. Neither TSX Venture Exchange
nor its Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or the accuracy of this release. To view this news
release in HTML formatting, please use the following URL:
http://www.cnw.ca/en/releases/archive/May2011/11/c3668.html p
align="justify" ROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/
1-866-666-3040br/ a
href="mailto:RKRAMBERGER@FORESTGATE.CA"RKRAMBERGER@FORESTGATE.CA/abr/
a href="http://WWW.FORESTGATE.CA" cr="true"WWW.FORESTGATE.CA/a /p
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