Petroteq Announces Closing of Financing

SHERMAN OAKS, Calif., Jan. 17, 2020 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. (“Petroteq” or the “Company”) ‎‎(TSXV:PQE; ‎OTC:PQEFF; FSE:PQCF), a fully integrated clean technology company with proprietary technology‎ for soil remediation and oil ‎extraction, announces that it has issued to an arm’s length lender a US$55,000 principal amount (including a 10% original issue discount) unsecured convertible debenture, and warrants exercisable for up to 357,142 common shares of the Company at US$0.14 per share for 12 months. The debenture has a term of 12 months and bears interest at a rate of 10% per annum payable on maturity. At the option of the holder the principal amount of the debenture is convertible into 357,142 common shares of the Company at US$0.14 per share. The net proceeds of the above financing will be used by the Company on its extraction technology in Asphalt Ridge, Utah, and for working capital. All securities issued pursuant to the financing are subject to resale restrictions, including, without limitation, a Canadian four-month hold period.

In addition, the Company intends to complete a shares for debt transaction, pursuant to which it will issue an ‎‎aggregate of 35,277 common shares in satisfaction of US$6,350 of indebtedness currently owed to an ‎arm’s ‎length service provider. The Company determined to satisfy the indebtedness with common shares in order to ‎‎preserve the Company’s cash for use on its extraction technology in Asphalt Ridge, Utah, and for working ‎capital. All ‎shares issued pursuant to the shares for debt transaction are subject to TSXV approval and will be ‎subject to resale ‎restrictions, including, without limitation, a Canadian four-month hold period.‎

About Petroteq Energy Inc.

Petroteq is a fully integrated clean technology 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 and reclamation of heavy and bitumen 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. Petroteq is currently focused on developing its oil sands resources and expanding production capacity at its Asphalt Ridge soil remediation and heavy oil extraction processing facility located near Vernal, Utah.