Connect with us

Companies

Petroteq Energy (OTC:PQEFF) closes multiple financings

Tony Zerucha

Published

on

Petroteq Energy (TSXV:PQE) (OTC:PQEFF), a fully integrated oil and gas company, closed multiple financings, the company announced today.

The company issued to an arm’s length lender a $2,.4 million principal amount (including an original issue discount of 20 percent) secured convertible debenture. The debenture has a term of nine months and bears annual interest at a rate of five percent payable at maturity and at the option of the holder the purchase amount of the debenture (excluding the original issue discount) is convertible into 5,000,000 common shares at $0.40 per share in accordance with the terms and conditions set out in the debenture.

Petroteq also issued to an arm’s length lender a US$143,750 principal amount (including an original issue discount of 15 percent) convertible debenture, along with warrants exercisable for up to 260,416 common shares at a price of US$0.48 per share until the date that is four months and one day from the date of issuance. The debenture has a term of four months and one day and bears annual interest at a rate of 10 percent payable at maturity and at the option of the holder the purchase amount of the debenture (excluding the original issue discount) is convertible into 260,416 common shares at US$0.48 per share in accordance with the terms and conditions set out in the debenture.

The company issued to nine arm’s length subscribers an aggregate of 1,522,080 common shares and 1,437,557 common share purchase warrants, for gross proceeds of an aggregate US$645,100. The foregoing consists of (i) 84,523 common shares at $0.42 per share; (ii) 952,380 units at $0.42 per unit, with each such unit consisting of one common share, and one warrant, with each warrant entitling the holder thereof to acquire an additional common share at $1.00 per share until the date that is 24 months from the date of issuance; (iii) 388,094 units at $0.42 per unit, with each such unit consisting of one common share, and one-half of one warrant, with each whole warrant entitling the holder thereof to acquire an additional common share at $1.50 per share until the date that is 24 months from the date of issuance; and (iv) 97,083 units at $0.48 per unit, with each such unit consisting of one common share, and one warrant, with each warrant entitling the holder thereof to acquire an additional common share at US$1.50 per share until the date that is 24 months from the date of issuance.

Petroteq issued to an arm’s length subscriber 307,692 units at $0.65 per unit, with each such unit consisting of one common share, and one warrant, with each warrant entitling the holder thereof to acquire an additional common share at $1.50 per share until the date that is 24 months from the date of issuance.

The net proceeds are earmarked for extraction technology in Asphalt Ridge, Utah, and for working capital. All securities issued pursuant to the above noted financings are subject to a four-month hold period. The financings are subject to final approval of the TSX Venture Exchange.

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

Continue Reading

Latest

Companies