Petroteq Energy Inc V.PQE.H

CFIUS + SEC investigation

[deepoil0808]

CFIUS 45 day investigation

The buyer Viston Swiss Ag, backed by Mr. Roch, are credible people with powerful connections.

The buyers are connected to the European Union, German parliament, Turkey, Switzerland and, they are supporters of Ukriane.   

There is no risk to CFIUS of a foreign buyer that is hostile to the USA.

Therefore the CFIUS will approve the buyout.


SEC investigation


There were two parts to the SEC investigation.   The first part involved Petroteq and the prior CEO with various securities violations.    A plea agreement was made and the file was closed with fines imposed.    PQE has taken the corrective actions necessary and PQE was reimbursed for the appropriate of funds by previous C EO.

So what remains?

This aspect deals with the BLM license agreements in UTAH.    

Point 1:    PQE paid $ 23 million for these licenses.   The issue is that the license belonged to parties related to 
                PQE and was not disclosed to shareholders.     The SEC wants to verify whether there was appropriation
                of funds given that the control group of related people bought the same license from third parties for a
                price that was less than $ 23 million.

                If PQE overpaid the license then the control group that was related to PQE will have to reimburse PQE.


Point 2:   There are two parts to the BLM license or two owners.   A 60% owner and a 40% owner.
                The 60% owner changed his mind and does not want that PQE operate on their land.
                The decision was not contested by PQE and is now prescribed.
                
                The issue with the SEC is that PQE should have recorded an impairement value for this decision.
                PQE disagrees as they remain convinced that they will be able to get BLM and owner of 60% land 
                to give the go ahead to the project.   PQE will probably throw more money to the owner which should 
                suffice.

                With regards to the 40% owner administered by BLM,  PQE has to get the permits from the authorities
                to process oil and it has not done so.   SEC feels that there should be some type of impairment for the
                risk.   PQE disagrees and feels confident that they will get the permits as their technology is clean
                technology.


You have to remember that VISTON is paying 465 million Euros.    They are not buying the license in UTAH as this represents at most $ 23 million out of the 465 million Euros.

What VISTON is buying from PQE are the patents and IP for their technology, which is unique in the world.

VISTION does not need to operate in Utah on the BLM lands as they can use the PQE technology and license it around the world to major oil companies.    The market for clean technology for oil is in the TRILLIONS of $$$$.

Now VISTION has lawyers and they are in contact with PQE and microscoping everything.

The fact that they renewed the tender off is that they are comfortable with the PQE situation and want to close out the buyout.    If they were nervous they would not have renewed the tender offer.

We have seen in the press release that Viston has addressed the financing issue and the ERGO bond.    The money is there.

The only issue investors have to deal with is a little time for CFIUS approval and for SEC due diligence to be completed.   I think the remaining issues with SEC are MINOR.

My personal opinion