Petroteq Announces Additional Debt Conversions and an Equity Investment

SHERMAN OAKS, Calif., Aug. 14, 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, is pleased to announce that Valkor Engineering has agreed to settle the remaining portion of its debt with the Company, namely, US$700,000, through the issuance of 11,666,666 common shares of the Company at a deemed price of US$0.06 per share. Including the shares for debt transaction between Valkor and the Company announced on July 20, 2020, upon closing of both transactions, Valkor would hold 60,624,666 common shares of the Company representing 19.92% of all common shares of the Company (assuming no other shares are issued between now and closing). Assuming the other transactions announced in the Company’s July 20, 2020 news release and this news release close, Valkor would hold 17.54% of all issued and outstanding shares of the Company. The shares for debt transaction for the US$700,000 of remaining debt is subject to completion and execution of a debt conversion agreement and all necessary approvals.

The willingness of Valkor to now accept full payment in shares is a huge vote of confidence by a sophisticated and capable technical partner and the Company believes it is a validation of the potential of the Company’s extraction technology at the Asphalt Ridge, Utah facility.

In addition, the Company also intends to complete an additional shares for debt transaction, pursuant to ‎which it will issue an ‎‎aggregate of ‎‎27,500,000 common shares in satisfaction of US$1,650,000 of indebtedness to an arm’s length lender.‎ The shares for debt transaction with the lender is subject to completion and execution of a debt conversion agreement and all necessary approvals.

The Company determined (with creditors’ consent) 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 Company also announces it has received US$300,000 from an existing arm’s length shareholder for an additional 5,000,000 common shares of the Company at US$0.06 per share. The proceeds will be used by the Company on its extraction technology in Asphalt Ridge, Utah, and ‎for working capital.‎ The equity investment is subject to completion and execution of a subscription agreement and all necessary approvals.