Petroteq Announces Amendment to Securities and Shares for Debt

SHERMAN OAKS, Calif., June 24, 2020 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. (“Petroteq” or the “Company”) ‎‎(TSXV:PQE; ‎OTC:PQEFF; FSE:PQCF), an integrated oil ‎company focused on the development and implementation of its proprietary oil-‎extraction and remediation technologies, announces the amendment of three convertible debentures and three warrants issued to an arm’s length lender between July 2019 and October 2019.

Pursuant to an agreement between the parties, the parties intend to amend the conversion price applicable to the purchase price (US$650,000) of the US$780,000 principal amount convertible debentures from US$0.17, US$0.19 and US$0.21 to US$0.037.

In addition, the parties intend to amend the exercise price of three warrants issued to the lender exercisable for up to 3,444,639 common shares of the Company from US$0.20, US$0.24 and US$0.26 to US$0.03.

The parties also intend to enter into a shares for debt agreement, pursuant to which it will issue an ‎‎aggregate of 912,493 common shares in satisfaction of US$27,374.79 of accrued and unpaid interest under the foregoing debentures.

In addition, the Company intends to complete a shares for debt transaction, pursuant to which it will issue 3,333,333 common shares in satisfaction of US$100,000 of indebtedness currently owed to an arm’s length creditor.

The Company determined to satisfy the foregoing 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.

The foregoing transactions are all subject to approval of the TSX Venture Exchange (the “Exchange”). The shares issued in the shares for debt transaction will be issued in reliance on exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and applicable state securities laws, and will be issued as “restricted securities” (as defined in Rule 144 under the U.S. Securities Act). In addition, such shares will be subject to a Canadian four-month hold period.‎

The Company also announces a correction to the shares for debt details from its June 12, 2020 news release. The Company has executed shares for debt agreements pursuant to which it will issue an ‎‎aggregate of 7,483,920 common shares in satisfaction of US$287,547 (CAD$389,712) (including accrued interest) of indebtedness currently owed to six ‎arm’s ‎length creditors.