Petroteq Energy Provides Update on Transaction With Deloro
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND
DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.
STUDIO CITY, Calif., May 22, 2018 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. (the “Company”) (TSXV:PQE) (OTC:PQEFF) (Frankfurt:PQCF), a company focused on the development and implementation of proprietary technologies for the energy industry, announces the irrevocable subscription and closing by Deloro Energy, LLC (“Deloro”) for 6,000,000 units (the “Units”) of the Company for gross proceeds of US$3,600,000. Concurrent with closing the Company, Deloro and Petroteq Energy CA, Inc. (the “Subsidiary”), a wholly-owned subsidiary of the Company, entered into a termination and release agreement whereby the parties agreed to (i) the termination of the memorandum of understanding (the “MOU”) between Deloro and the Subsidiary, previously announced by the Company on November 23, 2017, and (ii) the US$2.5 million advanced by Deloro under the MOU, previously announced by the Company on February 5, 2018, being attributed towards Deloro’s subscription. Due to the stable rise in oil prices and the Company’s ability to finance the development and launch of its anticipated 1,000 barrel plant without the funds to be provided by Deloro as per the MOU, the Company felt that it was in the best interest of its shareholders to rescind the MOU, which entitled Deloro to convert the funds provided by Deloro into 51% of the Subsidiary. Therefore the Company successfully negotiated the termination of the MOU and a commitment for additional funds from Deloro to be provided to the Company in the form of an equity investment.
Each Unit consists of one common share of the Company and one common share purchase warrant, with each warrant entitling Deloro to acquire one common share of the Company at an exercise price of US$0.91 per share until May 22, 2021. The subscription is subject to final approval from the TSX Venture Exchange (the “Exchange”). All of the securities issued are subject to a four month hold period from the date of issuance. The net proceeds will be used by the Company for use on its extraction technology in Asphalt Ridge, Utah, and for working capital.
Pursuant to Deloro’s subscription, and subject to the approval of the Exchange, the Company has granted Deloro the right and option to subscribe for up to an additional 4,000,000 Units at a deemed price of US$0.60 per Unit until June 13, 2018.
In addition, the Company has agreed to issue 100,000 common shares of the Company to Mr. Frank C. Ingriselli, a member of the Company's Advisory Board, as announced by the Company on May 21, 2018. The common shares will vest in three instalments between May 28, 2018 and September 30, 2018.
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 oils 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 facility located near Vernal, Utah. The Company also owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc. In addition, the Company, through its wholly owned subsidiary PetroBLOQ, LLC, is seeking to develop the first blockchain based platform created exclusively for the supply chain needs of the oil & gas sector. For more information, visit www.Petroteq.energy and PetroBLOQ.com.
Certain statements contained in this news release contain 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 Company’s extraction plant producing at 1,000 barrels per day, 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 the technology and plans used for the extraction plant performing as expected by the Company. 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 Exchange not providing final approval for one or more of the transactions; 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; 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 disclosure documents 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 and 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.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
Petroteq Energy Inc.
Tel: (800) 979-1897
Source: Petroteq Energy Inc.
Released May 22, 2018