Petroteq Announces Revised Terms of Proposed New Financing and Amendment to Securities

SHERMAN OAKS, Calif., Sept. 22, 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 revised terms to a proposed arrangement with an existing arm’s length lender (the “Lender”) and its affiliate (the “Affiliate”), originally announced on September 3, 2020. Pursuant to guidance from the TSX Venture Exchange (the “Exchange”), the agreement between the parties is now as follows:

1. the Lender has exercised existing warrants of the Company for gross proceeds to the Company of US$68,045.07 which is being used by the Company to pay accrued and unpaid interest on existing convertible debentures of the Company held by the Affiliate and the Lender;
   
   
2. the Lender has executed an irrevocable subscription agreement wherein it has agreed to lend the Company US$250,000 in exchange for a US$300,000 principal amount (including an original issue discount of 20%) unsecured convertible debenture, and warrants exercisable for up to 4,545,454 common shares of the Company at US$0.055 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$250,000) will be convertible into common shares of the Company at US$0.055 per share during the initial 12 months of the term and US$0.08 per share thereafter. The net proceeds of the debenture financing will be used by the Company for working capital;
   
   
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, 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, (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, 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 (iii) the Convertible Debenture dated March 30, 2020 issued to the Affiliate, for principal amount of US$471,000 bearing ‎interest at 10.0% per annum, payable quarterly that matures on March 30, 2024, that had a purchase price ‎of US$392,500 and that is convertible at US$0.08 per share, will be amended to US$0.055 per share during the initial 12 months of the original term and US$0.08 thereafter; and