Management Update
Petroteq Energy Inc. (OTC PINK:PQEFF) announced it will miss the deadline for financial statement restatements, pushing completion to August 19, 2021. This follows a Cease Trade Order from the Ontario Securities Commission due to a failure to file its quarterly report on time. The company aims to classify a $6 million promissory note as a contingent liability, expecting the CTO to lift upon filing the restated statements. Operations continue normally as Petroteq collaborates with auditors to resolve the issue.
- Petroteq continues to operate normally.
- Management is collaborating with auditors to resolve financial filing issues.
- Failure to complete financial statement restatements on time may impact investor confidence.
- Cease Trade Order remains in effect, limiting trading.
SHERMAN OAKS, CA / ACCESSWIRE / August 13, 2021 / Petroteq Energy Inc. ("Petroteq" or the "Company") (TSXV:PQE; OTC PINK:PQEFF; FSE:PQCF), an oil company focused on the development and implementation of its proprietary oil-extraction and remediation technologies, announced today that, contrary to management's prior expectations outlined in Petroteq's press release of August 9, 2021, it will not be able to complete the intended restatements of the Company's financial statements by August 13, 2021. The filing process has already begun, but due to the nature of said process, it is not expected to be finished until August 19. The Cease Trade Order ("CTO") issued by the Ontario Securities Commission (the "OSC") and the TSX Venture Exchange, as a result of Petroteq's failure to file its quarterly report on Form 10-Q (and related certifications) for the period ended May 31, 2021 (the "Quarterly Report") on or before July 30, 2021, as required, remains in effect.
Based on the final opinion of special legal counsel engaged by the Company to review the matter, the Company intends to classify the liability represented by the secured promissory note issued to Redline Capital Management S.A. on December 27, 2018, in the principal amount of
Management expects that the CTO will be automatically lifted once the restated financial statements are filed, and Petroteq's outstanding Quarterly Report is filed.
The Company continues to operate normally and is working diligently with its auditors, Hay & Watson, to be in a position to file restated financial statements and the Quarterly Report as soon as practicable.
Dr. R.G. Bailey, Chief Executive Officer, commented, "The diligent work of the CFO and our auditor is expected to rectify this matter to the benefit of the Company and the shareholders".
About Petroteq Energy Inc.
Petroteq is a clean technology company focused on the development, implementation and licensing of a patented, environmentally safe and sustainable technology for the extraction and reclamation of heavy oil and bitumen from oil sands and mineable oil deposits. The versatile technology can be applied to both water-wet deposits and oil-wet deposits - outputting high-quality oil and clean sand.
Petroteq believes that its technology can produce a relatively sweet heavy crude oil from deposits of oil sands at Asphalt Ridge without requiring the use of water, and therefore without generating wastewater which would otherwise require the use of other treatment or disposal facilities which could be harmful to the environment. Petroteq's process is intended to be a more environmentally friendly extraction technology that leaves clean residual sand that can be sold or returned to the environment, without the use of tailings ponds or further remediation.
For more information, visit www.Petroteq.energy.
Forward-Looking Statements
Certain statements contained in this press release contain forward-looking statements within the meaning of the U.S. and Canadian securities laws. Words such as "may," "would," "could," "should," "potential," "will," "seek," "intend," "plan," "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company are intended to identify forward-looking information, including statements with respect to the timing for the filing of the financial statements, and that the CTO will be automatically lifted once the Quarterly Report is filed. Readers are cautioned that there is no certainty that it will be commercially viable to produce any portion of the resources. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, based on information available to the Company, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information. While forward-looking statements are based on data, assumptions and analyses that the Company believes are reasonable under the circumstances, whether actual results, performance or developments will meet the Company's expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of the Company to differ materially from its expectations. Certain of the "risk factors" that could cause actual results to differ materially from the Company's forward-looking statements in this press release include, without limitation: action by the OSC to prevent lifting of the CTO; the TSX Venture Exchange failing to reinstatement trading; uncertainties inherent in the estimation of resources, including whether any reserves will ever be attributed to the Company's properties; since the Company's extraction technology is proprietary, is not widely used in the industry, and has not been used in consistent commercial production, the Company's bitumen resources are classified as a contingent resource because they are not currently considered to be commercially recoverable; full scale commercial production may engender public opposition; the Company cannot be certain that its bitumen resources will be economically producible and thus cannot be classified as proved or probable reserves in accordance with applicable securities laws; changes in laws or regulations; the ability to implement business strategies or to pursue business opportunities, whether for economic or other reasons; status of the world oil markets, oil prices and price volatility; oil pricing; state of capital markets and the ability of the Company to raise capital; litigation; the commercial and economic viability of the Company's oil sands hydrocarbon extraction technology, and other proprietary technologies developed or licensed by the Company or its subsidiaries, which currently are of an experimental nature and have not been used at full capacity for an extended period of time; reliance on suppliers, contractors, consultants and key personnel; the ability of the Company to maintain its mineral lease holdings; potential failure of the Company's business plans or model; the nature of oil and gas production and oil sands mining, extraction and production; uncertainties in exploration and drilling for oil, gas and other hydrocarbon-bearing substances; unanticipated costs and expenses, availability of financing and other capital; potential damage to or destruction of property, loss of life and environmental damage; risks associated with compliance with environmental protection laws and regulations; uninsurable or uninsured risks; potential conflicts of interest of officers and directors; risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; and other general economic, market and business conditions and factors, including the risk factors discussed or referred to in the Company's disclosure documents, filed with United States Securities and Exchange Commission and available at www.sec.gov (including, without limitation, its most recent annual report on Form 10-K under the Securities Exchange Act of 1934, as amended), and with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward- looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION:
Petroteq Energy Inc.
R.G. Bailey
Interim Chief Executive officer
Tel: (800) 979-1897
SOURCE: Petroteq Energy Inc.
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