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Petroteq Energy Inc
Symbol PQE
Shares Issued 530,775,628
Close 2021-07-30 C$ 0.17
Recent Sedar Documents

Petroteq awaits OSC decision regarding MCTO application

2021-07-31 02:25 ET - News Release

Mr. Mark Korb reports

PETROTEQ PROVIDES BY-WEEKLY UPDATE ON STATUS OF APPLICATION FOR MANAGEMENT CEASE TRADE ORDER

Petroteq Energy Inc. is providing this biweekly update on the status of the company's application for a management cease trade order (the MCTO), which has now been filed by the company with its principal regulator, the Ontario Securities Commission, under National Policy 12-203 (Management Cease Trade Orders), following the company's announcement on July 16, 2021, that it will be unable to file its quarterly report on Form 10-Q (and related certifications) for the period ended May 31, 2021, on or before July 30, 2021, as required under Canadian National Instrument 51-102 (Continuous Disclosure Obligations). The MCTO, if granted, will not affect the ability of investors who are not insiders to trade in the securities of the company. No decision has yet been made by the Ontario Securities Commission on this application.

The company continues to work closely with its auditor to remedy the default status and file the documents and the restatements of its periodic financial statements as soon as possible.

As referenced in the announcement, the audit committee of Petroteq has engaged legal counsel to undertake a review of the settlement agreement, the note and the security agreement with the view to determining whether they are enforceable (and, in particular, whether the security agreement has properly charged the company's right, title and interest in the oil and gas leases as personal property, and whether any security interests purportedly granted pursuant to the security agreement have been perfected under applicable law), and whether the related liability should be classified as an actual or contingent liability.

The company confirms that since the date of the announcement: (i) except as set out above, there has been no material change to the information set out in the announcement that has not been generally disclosed; (ii) the company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines under NP 12-203 and issue biweekly default status reports for so long as the delay in filing the documents is continuing, each of which will be issued in the form of a press release; (iii) there has not been any other specified default by the company under NP 12-203; (iv) the company is not subject to any insolvency proceedings; and (v) there is no material information concerning the affairs of the company that has not been generally disclosed.

The company also announces that it has closed the: (i) equity financing of 17,874,996 units at 12 U.S. cents per unit for gross proceeds of $2,144,999.92 (U.S.); (ii) debt financing of a $3-million (U.S.) principal amount (including a 20-per-cent OID) convertible secured debenture and 20,833,333 transferable common share purchase warrants, for the total subscription price of $2.5-million (U.S.); and (iii) debt financing of a $120,000 (U.S.) principal amount (including a 20-per-cent OID) convertible debenture and 833,333 transferable common share purchase warrants, for the total subscription price of $100,000 (U.S.), previously announced on July 13, 2021. In connection with the above noted financings, the company paid registered dealers and finders: (i) an aggregate cash commission of $237,999.99; and (ii) non-transferable compensation options to purchase 5,785,415 common shares of the company at an exercise price of 12 U.S. cents per share for a period of 24 months from closing for 316,666 of the options and 48 months from closing for 5,468,749 of the options.

About Petroteq Energy Inc.

Petroteq is a clean technology company focused on the development, implementation and licensing of a patented, environmentally safe and sustainable technology for the extraction and reclamation of heavy oil and bitumen from oil sands and minable oil deposits. The versatile technology can be applied to both water-wet deposits and oil-wet deposits -- outputting high-quality oil and clean sand.

Petroteq believes that its technology can produce a relatively sweet heavy crude oil from deposits of oil sands at Asphalt Ridge without requiring the use of water, and therefore without generating waste water, which would otherwise require the use of other treatment or disposal facilities, which could be harmful to the environment. Petroteq's process is intended to be a more environmentally friendly extraction technology that leaves clean residual sand that can be sold or returned to the environment, without the use of tailings ponds or further remediation.

We seek Safe Harbor.

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