Each one in plain English, with the numbers worked through for a shareholder.
14 Oct 2020capital raising announcement● Neutral
Petroteq agreed to issue 671,232 and 1,369,863 shares at US$0.073 to two creditors for US$49,000 and US$100,000 of debt, subject to approvals including the TSX Venture Exchange. A news release also promotes its extraction technology (pre-FEED study for a 5-10k bbl/day plant, capex estimated at US$15-20k per daily barrel), says it will evaluate other end products, and says the US$300,000 debenture announced September 22 has closed. The filing itself says the bitumen is only a contingent resource, not commercially recoverable reserves.
This reports the completion of several September 2020 deals. A lender closed a US$300,000 unsecured convertible debenture (US$250,000 proceeds) with warrants for up to 4,545,454 shares at US$0.055. Conversion prices on three older debentures and exercise prices on three warrants were cut to US$0.055. Share issues include 24,030,713 shares to settle US$1,321,689.22 of interest on the US$3.3 million debenture, whose conversion price fell from $1.00 to $0.055 and whose maturity moved from September 2019 to March 31, 2021, plus 2,161,892 shares for a US$118,904.11 debenture and two smaller debt swaps. Existing holders are diluted substantially and the conversion terms are much lower than before.
Petroteq agreed to give Valkor Engineering 11,666,666 shares at a deemed US$0.06 to settle US$700,000 of engineering debt, subject to TSX Venture Exchange approval. This appears to address the remaining roughly US$700,000 owed to Valkor left open after the July deal (an inference from matching amounts). An existing offshore shareholder also subscribed for 5,000,000 shares at US$0.06 for US$300,000 cash, already issued. More shares are issued, diluting existing holders, but the cash is for Asphalt Ridge and working capital.
Petroteq received a subscription from an arm's length lender for a US$150,000 convertible debenture (US$125,000 purchase price after a 20% discount), with warrants for up to 3,033,980 shares, both at US$0.0412, pending TSX Venture Exchange approval. The same lender's older debentures (US$250,000 and US$480,000) and two warrants are to be repriced to US$0.0412 and extended to July 31, 2021, and 814,584 shares would be issued for US$33,560.88 of unpaid interest. The company says it pays in shares to preserve cash. This continues the pattern of dilutive financing at lower prices; the old conversion prices were US$0.15 to US$0.18.
24 July 2020capital raising announcement▼ BadMajor
Petroteq agreed to give Valkor LLC (Valkor Engineering) 45,000,000 shares at US$0.04 to settle US$1.8 million of a US$2.5 million engineering debt, and Executive Chairman Alex Blyumkin agreed to buy 15,000,000 shares at US$0.04 for US$600,000. Smaller debt-for-share deals were also announced: 6,099,785 shares to Beverly Pacific Holdings (US$243,991), 2,356,374 shares to Blyumkin (about US$94,254 of loans) and 300,000 shares to a service provider (US$30,000). All are subject to TSX Venture Exchange approval. The Valkor shares would be 16.51% of the 272,596,058 shares outstanding after issue (227,596,058 today), so existing holders are diluted; it extends the company's pattern of paying debts in shares. The filing does not say what happens to the remaining US$700,000 owed to Valkor.
This amendment confirms the TSX Venture Exchange approved the share issues in items 2 to 7 of the June 30 filing, and the shares were authorised for issue on July 6, 2020. It corrects one count: the CAD$95,422 debt settlement is for 1,734,944 shares, not the 1,636,362 first reported. The June 24 deal for 3,333,333 shares is still awaiting approval.
Petroteq reported issuing 1,998,739 shares on June 30, 2020 for US$79,949.59 advanced by an offshore subscriber, and seven shares-for-debt deals (June 2020) to settle small debts with shares, pending TSX Venture Exchange approval. The company says it is paying in shares to preserve cash. This continues its earlier practice of paying creditors with shares, which dilutes existing holders.
