Item 8.01 Other Events.
On January 6, 2021, Petroteq Energy Inc. (the "Company") issued a news release
announcing an amendment to the agreement it announced on December 28, 2020 with
an arm's length lender in respect of a debenture issued by the Company to the
lender on July 19, 2019 that matured on October 19, 2020, and a debenture issued
by the Company to the lender on September 17, 2019 that matured on December 17,
2020.
Under the amended agreement (i) the lender will only be converting the interest
under the debentures into shares (581,026) at a deemed price of US$0.039 per
share, (ii) the lender will not be converting the principal (US$490,000) under
the debentures into shares, and instead has agreed to extend the maturity date
of each debenture by 12 months with the conversion price of such debentures
being increased from US$0.037 to US$0.0475, and (iii) the Company will issue the
lender 1,000,000 warrants exercisable for up to 1,000,000 common shares of the
Company at US$0.0475 per share with 500,000 expiring on October 19, 2021 and
500,000 expiring on December 17, 2021.
The transactions are subject to all necessary approvals, including from the TSX
Venture Exchange. The foregoing securities will be issued in reliance on
exemptions from the registration requirements of the United States Securities
Act of 1933, as amended (the "U.S. Securities Act"), and applicable state
securities laws, and will be issued as "restricted securities" (as defined in
Rule 144 under the U.S. Securities Act). In addition, the shares issuable
pursuant to the shares for debt transaction and the warrants issuable pursuant
to the debenture extensions will be subject to a Canadian four-month hold
period.?
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit Description
99.1 News Release dated January 6, 2021.
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