Petroteq Energy Inc. Announces Shares for Debt Transactions
TORONTO, ONTARIO -- (Marketwired) -- 08/15/17 -- Petroteq Energy Inc. (the "Company") (TSX VENTURE:PQE)(OTCQX:PQEFF), a company focused on the development and implementation of proprietary technologies for the environmentally safe extraction of heavy oils from oil sands, oil shale deposits and shallow oil deposits, announces that the shares for debt agreement announced by the Company on October 4, 2016, pursuant to which the Company would issue 27,021,050 (pre-May 2017 consolidation) common shares in satisfaction of US$3,075,000 (US$3,000,000 plus accrued and unpaid interest to September 18, 2016) of indebtedness owed to Alex Blyumkin, an officer and director of the Company, pursuant to a US$3,000,000 promissory note (the "Note") originally issued by the Company to Mr. Blyumkin in March 2016, has not closed.
On August 8, 2017, Mr. Blyumkin assigned the Note (including all accrued and unpaid interest) to three arm's length creditors (the "Creditors") who have each entered into shares for debt agreements with the Company pursuant to which the Company will issue 14,391,330 common shares in satisfaction of the Note (US$3,215,625 including accrued and unpaid interest to August 18, 2016). The shares will be issued upon acceptance by the TSX Venture Exchange and approval by the directors of the Company. The common shares issued in satisfaction of the indebtedness will be subject to a four month hold period from the date of issuance.
In addition, the Company announces that the US$15,000 subscription by Robert Dennewald, an independent director of the Company, for 58,593 common shares of the Company, announced on July 11, 2017, has closed.
About Petroteq Energy Inc.
The Company is engaged in the development and implementation of its proprietary, environmentally friendly heavy oil processing and extraction technologies. The Company is currently focused on oil and gas exploration and production on mineral leases located in southwest Texas held by Accord GR Energy Inc. (46% of which is owned by the Company), developing its oil sands resources and in expanding production capacity at its Asphalt Ridge heavy oil extraction facility located near Vernal, Utah.
Certain statements contained in this press release contains forward-looking statements within the meaning of the U.S. and Canadian securities laws. Words such as "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company, including the expected completion of the proposed shares for debt transactions, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, based on information available to the Company, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information. While forward-looking statements are based on data, assumptions and analyses that the Company believes are reasonable under the circumstances, whether actual results, performance or developments will meet the Company's expectations and predictions depend on a number of risks and uncertainties that could cause the actual results, performance and financial condition of the Company to differ materially from its expectations.
Certain of the "risk factors" that could cause actual results to differ materially from the Company's forward-looking statements in this press release include, without limitation: the directors of the Company or the TSX Venture Exchange do not approve the shares for debt agreements; changes in laws or regulations; the ability to implement business strategies or to pursue business opportunities, whether for economic or other reasons; status of the world oil markets, oil prices and price volatility; and oil pricing; state of capital markets and ability by the Company to raise capital; litigation; the commercial and economic viability of the Company's oil sands hydrocarbon extraction technology, the SWEPT technology, the S-BRPT technology, and other proprietary technologies developed or licensed by the Company or by Accord which are of experimental nature and have not been used at full capacity for an extended period of time; reliance on suppliers, contractors, consultants and key personnel; the ability of the Company and Accord to maintain their respective mineral lease holdings; potential failure of the Company's business plans or model; the nature of oil and gas production and oil sands mining, extraction and production; uncertainties in exploration and drilling for oil, gas and other hydrocarbon-bearing substances; unanticipated costs and expenses, availability of financing and other capital; potential damage to or destruction of property, loss of life, and environmental damage; risks associated with compliance with environmental protection laws and regulations; uninsurable or uninsured risks; potential conflicts of interest of officers and directors; and other general economic, market and business conditions and factors, including the risk factors discussed o r referred to in the Company's annual Management's Discussion and Analysis for the year ending August 31, 2016, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward - looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
Petroteq Energy Inc.
Chief Executive Officer
Source: Petroteq Energy Inc.
Released August 15, 2017