- First announced in September 2019, the equity financing generated proceeds of $500,000
- The financing is part of an ongoing effort to secure the capital required to enhance the company’s Asphalt Ridge oil extraction processes
- Extraction operations were recently resumed at Asphalt Ridge after facility upgrades
Petroteq Energy Inc. (TSX.V: PQE) (OTC: PQEFF) announced on October 18, 2019, the final closing of equity financing initiated one month prior. According to a news release, the company generated gross proceeds of $500,000 through the issuance of 2,777,777 units sold at $0.18 each (http://nnw.fm/8XlSF). Funds generated through the equity financing will be put towards the company’s innovative clean oil extraction technology.
In addition, Petroteq has issued to an arm’s length lender a $240,000 principal amount unsecured convertible debenture and warrants exercisable for up to 1,176,470 common shares of the company at $0.20 per share for 15 months. The debenture has a timeframe of 15 months and carries an interest rate of seven percent annually (payable quarterly).
All of the proceeds will be dedicated to furthering work at the company’s Asphalt Ridge facility in Utah, as well as for working capital. All securities issued pursuant to the financing are subject to resale restrictions, including, without limitations, a Canadian four-month hold period.
This is a part of an ongoing Petroteq effort to secure financing, reduce debt and improve the financial bottom line.
Petroteq is a fully integrated oil and gas company that focuses on the development and implementation of innovative extraction technologies. The company’s proprietary, patent-pending application is a closed-loop, solvent-based extraction process. As a green technology, it allows for the effective and environmentally friendly extraction of oil from ground surface oil sands.
Known as Clean Oil Recovery Technology (CORT), the proprietary methodology uses a solvent emulsifier to complete the extraction process, without requiring the use of heat of water. Additionally, CORT does not generate greenhouse emissions: the only thing left behind after the completion of the process is clean sand.
Last year, Petroteq began scaling production at Asphalt Ridge, selling oil to regional markets and quickly proving the effectiveness of CORT. In May 2019, the company ceased operations to initiate a maintenance program aimed at improving the separation of oil from sand.
Through these recent technological enhancements, Petroteq plans to significantly boost production at Asphalt Ridge. This step wise approach will potentially enhance cash flow in what is currently a much more favorable pricing environment, Petroteq’s CEO David Sealock said in a news release (http://nnw.fm/pT70o).
Production at Asphalt Ridge resumed in October 2019. “The work that has been completed to evolve Petroteq’s environmentally friendly technology, from a batch process to semi-continuous production process, is the basis of many valuable design lessons learned through the improvement process,” Petroteq’s executive chairman Alex Blyumkin said in a news release.
Petroteq plans to hold a conference call in December 2019, reviewing the company’s current operating results. Additional details and a North American/international toll-free number will be provided as the date approaches.
For more information, visit the company’s website at www.Petroteq.energy
NOTE TO INVESTORS: The latest news and updates relating to PQEFF are available in the company’s newsroom at http://nnw.fm/PQEFF
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