NR: Petroteq Announces Commissioning of Asphalt Ridge Facili ORIGINAL: Petroteq Announces Commissioning of Asphalt Ridge Facility
2019-09-17 08:00 ET - News Release
SHERMAN OAKS, Calif., Sept. 17, 2019 (GLOBE NEWSWIRE) -- 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 that the Company’s field operations and engineering staff have initiated the commissioning processes and sequences for the new equipment as final connections to the new heated augers, and mixer tank material tie-ins to the pre-oil tank on the sand separation equipment have been completed. The Company will issue a press release once commissioning has been completed and the facility starts processing oil sands ore to achieve sales of oil production at its Asphalt Ridge facility.
The Company also announces it has received irrevocable subscriptions for 6,091,336 common shares of the Company at US$0.13 per share for gross proceeds of US$791,874 (including $90,500 from Alex Blyumkin, the Executive Chairman and a director of the Company). The net proceeds will be used by the Company on its extraction technology in Asphalt Ridge, Utah, and for working capital. The financing is subject to TSXV approval and all shares issued will be subject to a four-month hold period. The subscription by Mr. Blyumkin is 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 since none of the securities of the Company are listed on a prescribed stock exchange. The proposed transaction is exempt from the minority shareholder approval requirements of MI 61-101 since, 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 1,290,000 common shares in satisfaction of US$461,000 of indebtedness (250,000 shares at a deemed price of US$0.27 per share, 250,000 shares at a deemed price of US$0.33 per share, 250,000 shares at a deemed price of US$0.39 per share and 540,000 shares at a deemed price of US$0.40 per share) currently owed to seven arm’s length parties. 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 shares for debt transactions are subject to TSXV approval and will be subject to a four-month hold period.
The Company also announces a proposed private placement of up to US$3,000,000 at no less than US$0.18 per share and including warrants exercisable for up to 16,666,666 common shares exercisable at no less than US$0.23 per share for up to 24 months. The private placement is subject to TSXV approval and all shares issued will 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. 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.