Petroteq Announces Proposed New Financing and Amendment to Securities

SHERMAN OAKS, Calif., Sept. 03, 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 a proposed arrangement with an existing arm’s length lender (the “Lender”) and its affiliate (the “Affiliate”). The agreement between the parties is as follows:

1. the Lender will exercise existing warrants of the Company for gross proceeds to the Company of a minimum of US$61,050 which would be used by the Company to pay accrued and unpaid interest on three existing convertible debentures of the Company held by the Affiliate;
    
2. the Lender will lend the Company US$200,000 in exchange for a US$240,000 principal amount (including an original issue discount of 20%) unsecured convertible debenture, and warrants exercisable for up to 2,000,000 common shares of the Company at US$0.10 per share for 15 months. The debenture will have a term of 15 months and bear interest at a rate of 7% per annum payable quarterly, and at the option of the Lender the purchase amount of the debenture (US$200,000) will be convertible into 2,000,000 common shares of the Company at US$0.10 per share in accordance with the terms and conditions set out in the debenture. The net proceeds of the debenture financing would be used solely by the Company to pay interest payments on existing convertible debentures of the Company held by the Lender and the Affiliate;
    
3. the conversion price of (i) the Convertible Debenture dated November 26, 2019 issued to the Affiliate, for principal amount of US$318,000 bearing ‎interest at 10.0% per annum and payable quarterly that matures on November 26, 2023, that had a purchase price ‎of US$265,000 and that is convertible at US$0.17 per share, and (ii) the Convertible Debenture dated December 4, 2019 issued to the Affiliate, for principal amount of US$432,000 bearing ‎interest at 10.0% per annum and payable quarterly that matures on December 4, 2023, that had a purchase price ‎of US$360,000 and that is convertible at US$0.17 per share, will be amended to US$0.10; and