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Montana Exploration Corp. to acquire Gale Force Petroleum Inc.


Published Jun 26, 2015
Montana Exploration Corp.

Montana Exploration Corp. and Gale Force Petroleum Inc. have entered into an arrangement agreement pursuant to which MTZ will acquire all of the issued and outstanding common shares and Series III preferred shares of Gale Force by way of a statutory plan of arrangement under the Canada Business Corporations Act. The purpose of the Arrangement is to combine the Shaunavon oil and Eagle gas exploration and development potential on MTZ's substantial land base in Montana with the cash resources of Gale Force.

Under the Arrangement, security holders of Gale Force will receive: (i) 0.465 common shares of MTZ for each GFP Common Share; and (ii) 0.555 MTZ Common Shares for each GFP Preferred Share. In connection with the Arrangement, all outstanding vested and unvested options of Gale Force shall be exchanged for replacement options of MTZ on equal terms. The consideration offered for the GFP Common Shares pursuant to the Arrangement represents an 86% premium to the closing price of the GFP Common Shares on the TSX Venture Exchange on June 23, 2015 of $0.025 per share and a premium of 115% to the 30 trading day volume weighted average trading price.

Upon closing of the Arrangement, approximately $360,000 of Gale Force's short-term debts (including directors' fees, trade accounts payable and severance pay) shall be paid by the issuance of MTZ Common Shares at a price of $0.10 per share.

Tags: Gale Force Petroleum Inc., Montana Exploration Corp.




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