Petroteq Energy Inc. (“
Petroteq” or the
“
Company”) (TSXV:PQE; OTC:PQEFF; FSE: PQCF), a
fully integrated surface oil sands mining oil company with
proprietary technology, announces the closing of a private
placement for aggregate gross proceeds of US$772,785.98 for
5,481,349 common shares in the capital of the Company (a
“
Common Share” or “
Common
Shares”) and warrants exercisable for 4,683,725 Common
Shares. The subscriptions included: (i) 246,153 Common Shares at a
subscription price of US$0.13 per Common Share to Alex Blyumkin,
an officer and director of the Company; (ii) 551,471 Common Shares
at a subscription price of US$0.21 per Common Share; (iii)
4,210,785 units of the Company at a subscription price of US$0.13
per unit, with each unit consisting of one Common Share and one
common share purchase warrant (each, a
“
Warrant”), with each Warrant entitling the holder
thereof to acquire an additional Common Share at a price of
US$0.18 per Common Share for twenty-four months; (iv) 352,940
units of the Company at a subscription price of US$0.17 per unit,
with each unit consisting of one Common Share and one Warrant, with
each Warrant entitling the holder thereof to acquire an additional
Common Share at a price of US$0.22 per Common Share for twelve
months; and (v) 120,000 units of the Company at a subscription
price of US$0.17 per unit, with each unit consisting of one Common
Share and one Warrant, with each Warrant entitling the holder
thereof to acquire an additional Common Share at a price of
US$0.22 per Common Share for twenty-four months.
All shares issued pursuant to the transaction
are subject to final TSX Venture Exchange approval and will be
subject to a four-month hold period. The net proceeds of the
financing will be used by the Company for use on its extraction
technology in Asphalt Ridge, Utah, and for working capital.
The private placement transaction with Mr.
Blyumkin is considered a “related party transaction” as defined
under Multilateral Instrument 61-101 (“MI
61-101”). The transaction is exempt from the formal
valuation approval requirements of MI 61-101 as none of the
securities of the Company are listed on a prescribed stock
exchange. The transaction is exempt from the minority shareholder
approval requirements of MI 61-101 as at the time the transaction
was agreed to, neither the fair market value of the transaction,
nor the fair market value of the consideration for the transaction,
insofar as it involves interested parties, exceeded 25% of the
Company’s market capitalization.
In addition, the Company intends to complete
shares for debt transactions, pursuant to which it will issue an
aggregate of 1,328,809 common shares in satisfaction of US$405,550
of indebtedness (200,000 shares at a deemed price of US$0.13 per
share, 10,921 shares at a deemed price of US$0.29 per share, 36,112
shares at a deemed price of US$0.33 per share and 1,081,776 shares
at a deemed price of US$0.34 per share) currently owed to 21 arm’s
length service providers. The Company determined to satisfy the
indebtedness with Common Shares in order to preserve the Company’s
cash for use on its extraction technology in Asphalt Ridge, Utah,
and for working capital. All shares issued pursuant to the
transaction are subject to a four month hold period.
About Petroteq Energy Inc.
Petroteq is a fully integrated oil and gas
company focused on the development and implementation of a new
proprietary technology for oil extraction. The Company has an
environmentally safe and sustainable technology for the extraction
of heavy and bitumen from oil sands, oil shale deposits and shallow
oil deposits. Petroteq is engaged in the development and
implementation of its patented environmentally friendly heavy oil
processing and extraction technologies. Our proprietary process
produces zero greenhouse gas, zero waste and requires no high
temperatures. Petroteq is currently focused on developing its oil
sands resources and expanding production capacity at its Asphalt
Ridge heavy oil extraction and processing facility located near
Vernal, Utah.
For more information, visit
www.Petroteq.energy.
Forward-Looking Statements
Certain statements contained in this press
release contain forward-looking statements within the meaning of
the U.S. and Canadian securities laws. Words such as “may,”
“would,” “could,” “should,” “potential,” “will,” “seek,”
“intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” and
similar expressions as they relate to the Company, including:
closing of the shares for debt transactions, are intended to
identify forward-looking information. Readers are cautioned that
there is no certainty that it will be commercially viable to
produce any portion of the resources. All statements other than
statements of historical fact may be forward-looking information.
Such statements reflect the Company’s current views and intentions
with respect to future events, based on information available to
the Company, and are subject to certain risks, uncertainties and
assumptions. Material factors or assumptions were applied in
providing forward-looking information, including: execution of
definitive shares for debt agreements and all closing conditions of
such agreements being met; and director and TSXV approval of the
shares for debt transactions being obtained; and TSXV final
approval of the financing. While forward-looking statements are
based on data, assumptions and analyses that the Company believes
are reasonable under the circumstances, whether actual results,
performance or developments will meet the Company’s expectations
and predictions depends on a number of risks and uncertainties that
could cause the actual results, performance and financial
condition of the Company to differ materially from its
expectations. Certain of the “risk factors” that could cause
actual results to differ materially from the Company’s
forward-looking statements in this press release include, without
limitation: failure by the TSXV to provide final approval to the
financing or shares for debt settlements; uncertainties inherent in
the estimation of resources, including whether any reserves will
ever be attributed to the Company’s properties; since the Company’s
extraction technology is proprietary, is not widely used in the
industry, and has not been used in consistent commercial
production, the Company’s bitumen resources are classified as a
contingent resource because they are not currently considered to
be commercially recoverable; full scale commercial production may
engender public opposition; the Company cannot be certain that its
heavy oil and bitumen resources will be economically producible
and thus cannot be classified as proved or probable reserves in
accordance with applicable securities laws; changes in laws or
regulations; the ability to implement business strategies or to
pursue business opportunities, whether for economic or other
reasons; status of the world oil markets, oil prices and price
volatility; oil pricing; state of capital markets and the ability
of the Company to raise capital; litigation; the commercial and
economic viability of the Company’s oil sands hydrocarbon
extraction technology, and other proprietary technologies
developed or licensed by the Company or its subsidiaries, which
currently are of an experimental nature and have not been used at
full capacity for an extended period of time; reliance on
suppliers, contractors, consultants and key personnel; the ability
of the Company to maintain its mineral lease holdings; potential
failure of the Company’s business plans or model; the nature of
oil and gas production and oil sands mining, extraction and
production; uncertainties in exploration and drilling for oil, gas
and other hydrocarbon-bearing substances; unanticipated costs and
expenses, availability of financing and other capital; potential
damage to or destruction of property, loss of life and
environmental damage; risks associated with compliance with
environmental protection laws and regulations; uninsurable or
uninsured risks; potential conflicts of interest of officers and
directors; and other general economic, market and business
conditions and factors, including the risk factors discussed or
referred to in the Company’s disclosure documents, filed with the
securities regulatory authorities in certain provinces of Canada
and available at www.sedar.com.
Should any factor affect the Company in an
unexpected manner, or should assumptions underlying the
forward-looking information prove incorrect, the actual results or
events may differ materially from the results or events predicted.
Any such forward-looking information is expressly qualified in its
entirety by this cautionary statement. Moreover, the Company does
not assume responsibility for the accuracy or completeness of such
forward-looking information. The forward-looking information
included in this press release is made as of the date of this
press release, and the Company undertakes no obligation to publicly
update or revise any forward-looking information, other than as
required by applicable law.
The securities referred to in this news release
have not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold
within the United States or to, or for the account or benefit of,
U.S. persons absent U.S. registration or an applicable exemption
from the U.S. registration requirements. This news release does not
constitute an offer for sale of securities, nor a solicitation for
offers to buy any securities. Any public offering of securities in
the United States must be made by means of a prospectus containing
detailed information about the company and management, as well as
financial statements.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CONTACT INFORMATION
Petroteq Energy Inc.Alex BlyumkinExecutive
ChairmanTel: (800) 979-1897
Petroteq Energy (TSXV:PQE)
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