SHERMAN OAKS, CA / ACCESSWIRE / July 1, 2021 / Petroteq Energy Inc. (“Petroteq” or the “Companies“) (TSXV: PQE, Financial) (OTC PINK: PQEFF) (FWB: PQCF), an integrated oil company focused on the development and implementation of its proprietary oil extraction and remediation technologies, announces its intention to enter into debt conversion transactions with two borrowers under the das Company will issue a total of 2,333,176 common shares of the Company at an assumed price of $ 0.094 per share to satisfy $ 219,318.33, representing certain accrued and unpaid interest on previously issued convertible bonds. In addition, the company intends to enter into debt conversion transactions with its four directors and one former director, which will result in a total of 862,456 shares of common stock at an assumed price of $ 0.094 per share in satisfaction of $ 81,071.30 from accrued and unpaid director fees incurred by these Board members are owed until June 30, 2021. The Company has determined (with the consent of the creditors) to settle the foregoing liability in common stock in order to receive the Company’s cash for use in its mining technology in Asphalt Ridge, Utah, and for “working capital.”
The foregoing transactions are subject to all necessary approvals, including the TSX Venture Exchange (the “exchange“). The foregoing securities are issued in reliance on exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the”US Securities Act“) and applicable state securities laws and are issued as” restricted securities “(as defined in Rule 144 of the US Securities Act). In addition, the shares to be issued are subject to a Canadian four month hold period.
The debt rescheduling transactions with the current four directors of the company (Messrs. Blyumkin, Bailey, Dennewald and Fuller) are each a “Related Party Transaction” for the purposes of Multilateral Instrument 61-101 (“MI 61-101The transactions are exempt from the formal valuation requirements of MI 61-101 as none of the Company’s securities are listed on any stock exchange referred to in Section 5.5 (b). The proposed transactions are exempt from minority shareholder approval requirements of MI 61 -101, since at the time of the transaction agreement neither the market value of the transaction nor the market value of the consideration for the transaction, if there are interested parties, is 25% of the market capitalization
In addition, following a request from the exchange, the company is announcing that the $ 130,000 equity funding announced by the company on April 9, 2021 and June 4, 2021, related to 2,166,665 common shares (not 2,666,665) and usage the proceeds for the company’s Asphalt Ridge, Utah extraction technology and working capital.
About Petroteq Energy Inc.
Petroteq is a fully integrated clean technology company focused on the development and implementation of a new proprietary technology for oil production. The company has an environmentally friendly and sustainable technology for the extraction and recovery 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. Petroteq is currently focused on developing its oil sands resources and expanding manufacturing capacity at its Asphalt Ridge soil remediation and heavy oil extraction processing facility near Vernal, Utah.
For more information, visit www.Petroteq.energie.
Forward-Looking Statements
Certain statements in this press release contain forward-looking statements within the meaning of US and Canadian securities laws. Words such as “may”, “would”, “could”, “should”, “potentially”, “will”, “seek”, “intend”, “plan”, “foresee”, “believe”, “estimate” “Expect” and similar expressions relating to the company are used to identify forward-looking information, including the completion of the transactions referenced herein. Readers are cautioned that there is no certainty that it will be economically viable to produce any part of the resource. All statements that are not historical facts may be forward-looking information. Such statements reflect the company’s current views and intentions with respect to future events, based on the information available to the company, and are subject to certain risks, uncertainties and assumptions, including, but not limited to: execution of final arrangements for the debt restructuring agreements and settlement or waiving the closing conditions and obtaining approval from the director and the exchange for the transactions. In providing forward-looking information, material factors or assumptions have been made. Although forward-looking statements are based on data, assumptions and analyzes that the company believes to be appropriate under the given circumstances, they are subject to a number of risks and uncertainties that could cause actual results, performance or developments to meet expectations and predictions The company’s results, performance and financial position differ materially from its expectations. Some of the “risk factors” that could cause actual results to differ materially from the Company’s forward-looking statements in this press release include, but are not limited to: failure of the stock exchange or the company’s directors to obtain the necessary approvals; all closing conditions are met or are waived; Uncertainties inherent in estimating resources, including whether reserves will ever be ascribed to the company’s properties; Because the company’s extraction technology is proprietary, not widely used in the industry, and has not been used in consistent commercial production, the company’s bitumen resources are classified as contingent resources as they are not currently considered commercially recoverable; full commercial production can lead to public opposition; the company cannot be certain that its bitumen resources are economically viable and therefore cannot be classified as proven or probable reserves under applicable securities laws; Changes in laws or regulations; the ability to execute business strategies or pursue business opportunities, whether for economic or other reasons; Status of world oil markets, oil prices and price volatility; Oil prices; State of the capital markets and the ability of society 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 that are currently experimental in nature and have not been used to full capacity for an extended period of time; Dependence on suppliers, contractors, consultants and key personnel; the company’s ability 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 hydrocarbonaceous substances; unexpected costs and expenses, availability of funding and other capital; possible damage to or destruction of property, loss of life and environmental damage; Risks associated with compliance with environmental laws and regulations; uninsurable or uninsured risks; potential conflicts of interest of officers and directors; Risks related to COVID-19, including various recommendations, orders and actions by government agencies to try to contain the pandemic, including travel restrictions, border closings, non-essential business closures, quarantines, self-isolation, accommodation in spatial and social distancing, Disruptions in markets, economic activity, financing, supply chains and distribution channels, and a deterioration in general economic conditions, including a possible national or global recession; 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 United States Securities and Exchange Commission and available at www.sec.gov (including but not limited to its most recent annual report on Form 10-K under the Securities Exchange Act of 1934, as amended) and from the securities regulators in certain provinces of Canada and available at www.sedar.com.
Should any factor unexpectedly affect the company, or should the assumptions underlying any forward-looking information prove to be incorrect, actual results or events could differ materially from those forecast. Such forward-looking information is expressly restricted in its entirety by this warning notice. Furthermore, the company assumes no responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information contained in this press release is prepared as of the date of this press release and the company assumes no obligation to publicly update or revise any forward-looking information except as required by applicable law.
The securities referred to in this press release have not been and will not 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 for the benefit of US Persons who do not have US registration or an applicable exemption from US registration requirements. This press release does not constitute an offer to sell any securities or a solicitation of an offer to buy any securities. Any public offer of securities in the United States must be made by means of a prospectus containing detailed information about the company and its management and financial statements contains.
Neither the TSX Venture Exchange nor its regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
CONTACT INFORMATION
Petroteq Energy Inc.
Alex Blyumkin
CEO
Tel: (800) 979-1897
SOURCE: Petroteq Energy Inc.
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