Petroteq Energy Inc. Provides Corporate Update
STUDIO CITY, CALIFORNIA -- (Marketwired) -- 07/26/17 -- 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 the following corporate matters:
Shares for Debt
The Company announces it has entered into a shares for debt agreement, pursuant to which it will issue 60,000 common shares in satisfaction of US$50,000 of indebtedness currently owed to an arm's length creditor. The Corporation determined to satisfy the indebtedness with common shares in order to preserve its cash for use on its extraction technology, and for working capital. The share issuance has been approved by the directors of the company and will be issued upon acceptance by the TSX Venture Exchange (the "TSXV"). The common shares issued in satisfaction of the indebtedness will be subject to a four month hold period from the date of issuance.
The Company announces the resignation of Dr. Gerald "Jerry" Bailey as CEO of the Company. Dr. Bailey has elected to retire after five years from his position as CEO in order to have more time to focus on his family and other ventures in which he is involved. He will remain as a director of the Company to provide technical expertise and executive experience to management and has agreed to continue to act as spokesman for the Company at various public venues and speaking engagements.
The Company also announces that the board of directors has appointed Alex Blyumkin, co-founder of the Company, to act as CEO in Dr. Bailey's place and also to serve as Board Chairman. In order to assume these roles Blyumkin has resigned from his officer position as Executive Chairman.
"Jerry has been instrumental in the development and commercialization of Petroteq's unique oil sands recovery technology over the last five years," commented Mr. Blyumkin. "We are extremely fortunate to have someone of Jerry's caliber on our team. Together with the board I thank him for his contributions and tireless dedication and wish him all success in his future endeavors."
The Company has entered into a services agreement with IRTH Communications, LLC ("IRTH"), a leading provider of investor relations, financial communications, and strategic consulting services to provide investor relations and communication services, subject to TSXV approval.
IRTH, based in Santa Monica, California, provides a full suite of investor relations services utilizing modern technologies coupled with long lasting relationships and relationship building processes to help develop and maintain interest from clients' shareholder bases.
IRTH has been retained for an initial term of 12 months with automatic successive 12 month renewal terms. The first renewal term can be terminated upon 30 days prior written notice, and the agreement can be terminated at any time during a renewal term upon 30 days prior written notice. IRTH will be paid a monthly fee of US$7,500 plus a US$100,000 set up fee, and a further US$100,000 set up fee upon each renewal term, if any.
The Company and IRTH act at arm's length, and IRTH has no present interest, directly or indirectly, in the Company or its securities. The fee paid by the Company to IRTH is for services only.
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 transaction and the investor relations agreement, the expected continuing contribution of Mr. Bailey as a spokesman for the Company and the expected ability of IRTH to help develop and maintain interest from the Company's shareholder base, 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, including, final approval of the shares for debt and the investor relations agreement by the TSXV, the continuing contribution of Mr. Bailey, the ability of IRTH to develop and maintain interest from the Company's shareholder base and that the technologies mentioned herein perform as anticipated. 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, 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 or 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Petroteq Energy Inc.
Chief Executive Officer
Source: Petroteq Energy Inc.
Released July 26, 2017