Each one in plain English, with the numbers worked through for a shareholder.
8 Mar 2022capital raising announcement● Neutral
Petroteq reported share issues from January 12 to February 1, 2022 without registration, mostly from warrant exercises at US$0.055 to US$0.12 per share, plus some debt conversions at US$0.094 to US$0.12. It also sold 6,250,000 units at US$0.12 for US$750,000 gross on January 26, each with a warrant at US$0.128 until January 26, 2024; proceeds are meant for Asphalt Ridge extraction technology and working capital. Examples: 20,833,333 shares on one warrant exercise, 8,333,333 on another, and 833,333 shares for a US$100,000 conversion of the July 24, 2021 note. This adds to the share count and continues the dilution already noted; the filing gives no new total.
19 Nov 2021capital raising announcement● NeutralMajor
Petroteq reported five share issuances to lenders from converting debt: 4,545,454 and 5,263,157 shares on August 30, 2021 (US$250,000 each), 29,166,667 shares on September 21 (US$1,400,000, the debenture that was due September 30, 2021), and 11,727,273 and 41,000,000 shares on November 10 (US$645,000 and US$2,255,000 from the debenture originally US$3,300,000). Total new shares are about 91.7 million, which dilutes existing holders but removes about US$4.8 million of principal as owed debt. It continues the pattern of debt-for-share conversions seen earlier in 2021, and explains part of the rise in shares outstanding.
Petroteq listed share and debt issuances from June to July 2021: warrant exercises (5,545,454 shares), conversions of the Nov 2020 and Jan 2021 notes into shares, debenture interest paid in shares at US$0.139, and 2,314,... director-fee shares issued at US$0.07 (578,480 each to Blyumkin, Bailey and Dennewald, 228,668 to Fuller). It also records the July closings: 17,874,996 units at US$0.12 (including Blyumkin's US$225,000 for 1,875,000 units), the US$3,000,000 and US$120,000 debentures, and a US$300,000 8% debenture subscription still awaiting TSXV approval. This confirms the dilution flagged earlier; the filing is a late disclosure of issuances already announced or partly seen in earlier filings.
14 July 2021capital raising announcement● NeutralMajor
Petroteq announced subscriptions for 17,874,996 units at US$0.12 (about US$2.14M), each with a share and a warrant at US$0.12, including US$225,000 from Alex Blyumkin for 1,875,000 units. It also announced new convertible debt: a US$3.0M 10% secured debenture (48 months, US$2.5M paid, with 20,833,333 warrants), a US$300,000 8% debenture with 2,500,000 warrants and a US$120,000 8% debenture with 833,333 warrants, all convertible at US$0.12. It plans to settle about US$700,000 owed to service providers with 5,833,333 shares at US$0.12. All of this is subject to definitive agreements, board and TSXV approval; the money is for Asphalt Ridge and working capital. This means more dilution and new debt.
Petroteq agreed to issue 1,388,897 shares at a deemed US$0.139 to two lenders to settle US$193,057 of principal and interest on convertible debentures, subject to TSXV approval, which the company says preserves cash for Asphalt Ridge and working capital. It also closed the April-announced private placement, saying 2,666,665 shares at US$0.06 for US$130,000 (including 1,666,666 to Alex Blyumkin); the April 30 correction had said 2,166,665 shares, so this filing's share count appears to repeat the figure that was corrected. This continues the practice of paying debt with shares.
This amends the April 9, 2021 filing to correct an error: the subscriptions were for 2,166,665 shares at US$0.06, not 2,666,665, with US$130,000 gross proceeds stated as correct. It confirms they were issued on April 28, 2021 after board and TSXV approval, including 1,666,666 shares to Alex Blyumkin for US$70,000 and 166,666 shares to an offshore investor. The rest of the filing repeats earlier disclosures; the company will not issue a corrective news release.
What it means for a shareholder
2.2m new shares at US$0.060 to raise about US$130,000. That's 0.509% dilution: every existing holder's slice gets 0.509% smaller. If you held US$1,000 of shares (16,667 at the issue price), your slice goes from 0.00393% to 0.00391% of the company. To keep it you'd need 85 more shares - about US$5 at the issue price.
Petroteq completed the debenture deal announced on April 9, 2021 after TSXV approval: it issued 26,334,246 shares (deemed US$0.047) for US$1,227,066.43 of interest and penalties and 15,000,000 shares (US$0.04) for US$600,000 of principal. The remaining US$1,400,000 debenture now matures September 30, 2021 with conversion at US$0.048. Separately, the company says the Asphalt Ridge oil sands plant has restarted and is producing oil after extra equipment was installed; it plans to fine-tune it, possibly move to two shifts if conditions warrant, and is working on design for a 5,000 bpd production train. The restart follows the earlier-than-planned late-2020 targets, and no production figures are given; the improvement expectations are the company's, not yet shown.
Petroteq disclosed a run of share issues and debt changes for early 2021: US$445,000 raised from 7,416,666 shares at US$0.06, US$222,000 of new convertible debentures at US$0.0562, a lender converting US$400,000 of principal into 9,708,738 shares, and two debentures extended by a year (to October 19 and December 17, 2021) with warrants at US$0.0475. It also proposed a deal on the US$2,400,000 secured convertible debenture, which had matured on February 20, 2021: US$1,227,066.43 of interest and penalties to be paid in 26,334,246 shares and US$600,000 of principal in 15,000,000 shares at US$0.04, leaving US$1,400,000 with maturity moved to September 30, 2021 and conversion price cut from US$0.40 to US$0.048. Further subscriptions for US$130,000 include US$70,000 from Alex Blyumkin; all of this was still subject to board and TSXV approval. The company says it used shares to preserve cash. This continues the pattern of paying debts with shares, with more dilution. (The share count in the subscriptions was later corrected.)
27 Nov 2020capital raising announcement● NeutralMajor
Petroteq completed several share issues in November 2020 that had been waiting on TSXV approval: 1,416,666 shares at US$0.06 for US$85,000 of debt, 2,041,095 shares at US$0.073 for US$149,000 of debt, and 56,666,666 shares to the Valkor-related debt settlement (45,000,000 at US$0.04 and 11,666,666 at US$0.06), totalling 60,124,427 shares. It also announced a further 1,538,461 shares for US$60,000 owed to a service provider. Greenfield Energy LLC (a 50/50 venture of TomCo Energy and Valkor) signed a non-exclusive multi-site licence to use Petroteq's oil sands technology in return for US$1,500,000 already funded toward the Asphalt Ridge plant upgrade plus US$500,000 more due within 20 days; Petroteq keeps all technology and gets a 5% royalty on net revenue from any future Greenfield plants. The plant restart, previously targeted for late November, is now expected the week of November 30, 2020, with independent trials to follow; commerciality and the 10,000 bopd plant are still unproven. The new shares add dilution.
Petroteq issued a US$500,000 secured convertible note to an arm's length lender, convertible into units at US$0.0562 each (one share plus a warrant at US$0.0562 for 60 months); proceeds go to Asphalt Ridge and working capital. A news release says assays of oil sands samples show 14-18% oil saturation by weight, and the company says its Asphalt Ridge plant is on track to restart in late November. This follows the February 2020 restart and the plant's expansion plans. The restart and output are company expectations, not yet achieved.
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.
