HERMAN OAKS, CA / ACCESSWIRE / June 2, 2022 / Petroteq Energy Inc. ("Petroteq" or the "Company") (TSXV:PQE); (OTC PINK:PQEFF); (FSE:PQCF), an oil company focused on the development and implementation of its proprietary oil-extraction and remediation technologies, is pleased to announce that it has entered into an agreement with Cantone Research, Inc. (the "Placement Agent") for a best efforts brokered offering of up to 12,195,121 units (the "Units") of the Company at US$0.205 per Unit for aggregate gross proceeds to the Company of up to US$2,500,000 (the "Offering"). Each Unit shall consist of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant will be exercisable to acquire one Common Share for a period of 24 months following the closing of the Offering at an exercise price of US$0.27 per share.
The Company intends to use the proceeds of the Offering for working capital and general corporate purposes. The Offering is subject to certain closing conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
The Units will be offered by the Placement Agent solely to one investor (the "Investor"). Mr. Anthony Cantone, who directly or indirectly, owns or controls more than 10% of the Common Shares, is the controlling shareholder of the Placement Agent and the controlling shareholder of the manager of the Investor.
In connection with the Offering, the Placement Agent will be entitled to a fee equal to 4% of the gross proceeds of the Offering, payable, at the sole discretion of the Company, in cash or Common Shares at US$0.205 per share. In addition, the Placement Agent will be entitled to up to 2,073,170 non-transferable broker warrants on the assumption the Offering is fully subscribed. Each broker warrant will be exercisable to acquire one Common Share for a period of 24 months following the closing of the Offering at an exercise price of US$0.205 per share.
The Units, Common Shares and Warrants being offered have not been, nor will they be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons" or persons in the "United States" (as those terms are defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. The Units will be offered and sold to the Investor pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws, and will be issued as "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act). In addition, the securities issuable pursuant to the Offering will be subject to a Canadian four-month hold period.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.