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Enter Symbol
or Name
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Petroteq Energy Inc
Symbol PQE
Shares Issued 86,965,263
Close 2018-09-20 C$ 1.30
Market Cap C$ 113,054,842
Recent Sedar Documents

Petroteq closes $3.3-million (U.S.) debenture financing

2018-09-21 02:07 ET - News Release

Mr. Alex Blyumkin reports

PETROTEQ ENERGY ANNOUNCES CLOSING OF FINANCINGS

Petroteq Energy Inc. has closed the debenture financings previously disclosed on Aug. 17, 2018.

The company issued to an arm's-length lender a $3.3-million (U.S.) principal amount (including an original issue discount of 10 per cent) secured convertible debenture, along with warrants exercisable for up to 250,000 common shares of the company at a price of $1.10 (U.S.) per share until the date that is 12 months from the date of issuance. The debenture has a term of 12 months and bears interest at a rate of 5 per cent per annum payable at maturity, and at the option of the holder, the purchase amount of the debenture (excluding the original issue discount of 10 per cent) is convertible into three million common shares of the company at $1 (U.S.) per share in accordance with the terms and conditions set out in the debenture. The company paid an arm's-length finder 300,000 common shares for the introduction to the lender. The company also issued to the same arm's-length lender an up to $9.5-million (U.S.) drawdown unsecured non-convertible debenture, which included an initial advance of $100,000 (U.S.). The debenture is callable at any time by the company, accrues interest at 10 per cent per annum payable monthly and matures after 12 months. In connection with the issuance of the debenture, the lender was issued 950,000 commitment shares in consideration for its commitment of the line of credit of up to $9.5-million (U.S.). The net proceeds will be used by the company for use on its extraction technology in Asphalt Ridge, Utah, for potential acquisitions of new oil sands resources and for working capital. All securities issued pursuant to the above-noted transactions are subject to a four-month hold period.

The company also announces a proposed financing of debenture units of the company consisting of up to $1.5-million (U.S.) principal amount unsecured debentures convertible into up to 1,485,148 common shares of the company at $1.01 (U.S.) per share and warrants exercisable for up to 1,485,148 common shares of the company at a price of $1.01 (U.S.) per share until the date that is 12 months from the date of issuance. Each debenture would have a term of 12 months and bear interest at a rate of 10 per cent per annum. The net proceeds would be used by the company for use on its extraction technology in Asphalt Ridge, Utah, for potential acquisitions of new oil sands resources and for working capital. Closing of the financing is subject to receipt of subscriptions, as well as approval of the TSX Venture Exchange and the directors of the company. All securities issued pursuant to the financing would be 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. Its proprietary process produces zero greenhouse gas and 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 facility located near Vernal, Utah. In addition, the company, through its wholly owned subsidiary, PetroBLOQ LLC, is seeking to develop the first blockchain-based platform created exclusively for the supply chain needs of the oil and gas sector.

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