GALLIC ENERGY LTD. ANNOUNCES CLOSING OF BROKERED PORTION OF PRIVATE PLACEMENT
21 September 2010 - 10:56AM
PR Newswire (Canada)
CALGARY, Sept. 20 /CNW/ -- /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./ CALGARY, Sept.
20 /CNW/ - Gallic Energy Ltd. ("Gallic") (TSXV: GLC) is pleased to
announce the closing of the previously announced brokered portion
of its private placement of units ("Units"). Each Unit is comprised
of one class A common share ("Common Share") and one warrant
("Warrant"), with each Warrant exercisable into one Common Share
for a period of 24 months after closing at an exercise price of
$0.10 per share. The closing of the brokered portion of the private
placement comprised 38,000,000 Units at a price of $0.05 per Unit
for gross proceeds of $1,900,000. Directors, officers and other
insiders participated for 700,000 Units of the brokered portion of
the private placement. The securities issued in connection with the
private placement are subject to a four month hold period. The
proceeds from this private placement will be used for general
working capital requirements. In connection with the brokered
portion of the private placement, Macquarie Private Wealth Inc.
(the "Agent") was paid a cash commission equal to 6% of the gross
proceeds from the brokered portion of the private placement and was
granted options (the "Broker Warrants") to acquire 1,520,000 Units,
being 4% of the total number of Units sold under the brokered
portion of the private placement, exercisable at a price of $0.05
per Broker Warrant for a period of 24 months from the closing date.
The securities will not be registered with the US Securities and
Exchange Commission and may not be offered or sold within the
United States without registration or an applicable exemption from
the registration requirements of the United States Securities Act
of 1933 and any applicable state securities laws. At the closing of
the brokered portion of the private placement, Gallic Energy Ltd.
has 82,939,154 Common Shares outstanding, and trades on the TSX
Venture Exchange under the symbol GLC. Forward-looking Statements
This press release contains forward-looking statements. Any
statements that are contained in this press release that are not
statements of historical fact may be considered forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "expects" and similar
expressions. Forward-looking statements in this press release
include, but are not limited to statements concerning the
anticipated use of the net proceeds from the private placement, and
management's assessment of future plans and operations,
expectations of future production, cash flow and earnings. Although
Gallic believes that the expectations reflected in these
forward-looking statements are reasonable, undue reliance should
not be placed on them because Gallic can give no assurance that
they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they
involve inherent risks and uncertainties. These forward-looking
statements are based on current expectations that involve a number
of risks and uncertainties, which could cause actual results to
differ materially from those anticipated. These risks include, but
are not limited to: the risks associated with the oil and gas
industry (e.g. operational risks in development, exploration and
production; delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses and health, safety and
environmental risks), acquisitions, commodity price and exchange
rate fluctuation and uncertainties resulting from competition from
other producers and ability to access sufficient capital from
internal and external sources. The private placement is subject to
receiving final approval from the TSX Venture Exchange. The
intended use of the net proceeds of the offering by Gallic might
change if the board of directors of Gallic, determines that it
would be in the best interests of Gallic to deploy the proceeds for
some other purpose. Readers are cautioned that the foregoing list
of factors is not exhaustive. Additional information on these and
other factors that could affect Gallic's operations and/or
financial results are included in Gallic's reports on file with
Canadian securities regulatory authorities. Readers are cautioned
not to place undue reliance on forward-looking statements as there
can be no assurance that the plans, intentions or expectations upon
which they are placed will occur. Such information, although
considered reasonable by management at the time of preparation, may
prove to be incorrect and actual results may differ materially from
those anticipated. Forward-looking statements contained in this
press release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this press release are
made as of the date hereof and Gallic undertakes no obligation to
update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT
FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES DESCRIBED
HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND
WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS
REGISTERED OR EXEMPT THEREFROM. Neither 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. Mr. Mark Woods, President
and Chief Operating Officer, Tel: (403) 263-1105, Fax: (403)
265-4514, markwoods@gallicenergy.com
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