One stock that has been popping up on our radar here and there over the past 8 weeks, based on action and catalysts is Petroteq Energy Inc (OTCMKTS:PQEFF). It’s hard to find interesting plays in the energy space on the OTC. But this might be one worth checking out as shares break out in a fresh move above the stock’s 200-day simple moving average. The company just announced that it has entered into two shares-for-debt agreements, pursuant to which it will issue an aggregate of 205,194 common shares in satisfaction of US$162,000 of indebtedness currently owed to two arm’s length creditors.
According to the release, “The Company also proposes to issue 336,871 common shares in satisfaction of US$249,285 of indebtedness currently owed to Alex Blyumkin, an officer and director of the Company. The Company determined to satisfy the indebtedness with common shares in order to preserve its cash for use on its extraction technology in Asphalt Ridge, Utah, and for working capital.”
Petroteq Energy Inc (OTCMKTS:PQEFF) styles itself as a company that is engaged in the development and implementation of its proprietary environmentally friendly heavy oil processing and extraction technologies.
The proprietary process produces zero greenhouse gas, zero waste and requires no high temperatures. The Company is currently focused on developing its oil sands resources and expanding production capacity at its Facility at Asphalt Ridge, Utah.
The Company also (i) owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc., (ii) has a joint venture with Recruiter.com and Oilprice.com that provides internet-based job placement and career services to the increasingly skilled and specialized energy sector, and (iii) is developing through PetroBloq an advanced blockchain solution for the energy industry, with a goal of optimizing petrochemical industry workflow processes.
According to company materials, “Petroteq is a fully integrated oil and gas company focused on the development and implementation of a new proprietary technology for oil extraction. The Company has an environmentally safe and sustainable technology for the extraction of heavy oils from oil sands, oil shale deposits, and shallow oil deposits. Petroteq is engaged in the development and implementation of its patented environmentally friendly heavy oil processing and extraction technologies. Our proprietary process produces zero greenhouse gas, zero waste and requires no high temperatures. Petroteq is currently focused on developing its oil sands resources and expanding production capacity at its Asphalt Ridge heavy oil extraction facility located near Vernal, Utah. The Company also owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc. In addition, the Company, through its wholly-owned subsidiary PetroBLOQ, LLC, is seeking to develop the first blockchain based platform created exclusively for the supply chain needs of the oil & gas sector.”
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Recent action has seen 43% added to share values of the listing over the past week of action, but that move comes in the context of a larger bearish trend. Moreover, the stock has seen a growing influx of trading interest, with the stock’s recent average trading volume running above 270% above the average volume levels in play in this stock over the longer term.
According to the company’s most recent release, “The Company determined to satisfy the foregoing indebtedness with common shares in order to preserve its cash for use on its extraction technology in Asphalt Ridge, Utah, and for working capital. The shares will be issued upon acceptance by the TSX Venture Exchange and approval by the directors of the Company. The common shares issued in satisfaction of the indebtedness will be subject to a four-month hold period from the date of issuance.”
Now commanding a market cap of $78.9M, PQEFF has a bankroll ($318K) of cash on the books, which must be weighed relative to about $3.6M in total current liabilities. The company is pre-revenue at this point. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $PQEFF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $PQEFF, either long or short, and we have not been compensated for this article.