This $0.20 pennystock has a buyout
offer on the table. This deal gives a
huge profit to shareholders at the
current prices but should we expect even
more?
The company that I am talking about is
PETROTEQ ENERGY! This is an oil and gas
play who seem to have the patented
technology to produce oil in a way that
is carbon negative.
I spoke about this company two weeks ago
at only 11 cents now it's 20 cent. When
we consider the huge opportunity that
exists here it is still very early in my
opinion.
As always guys this is just my opinion,
not financial advice. I am just
bringing you information that you might
not be aware of and I encourage anybody
thinking about investing in this or any
other stock to do your own research
before making any decisions. If you're
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this exciting stock.
One of the major challenges facing
humanity today is how to produce energy
in an environmentally friendly way.
Most companies in the oil and gas
industry don't have the necessary
technology to do this while others
believe that the technologies and
strategies needed are not feasible.
PETROTEQ specializes in oil production
and ancillary offerings in mining and
sand remediation and have developed
technology that enables them to produce
oil without water waste or emissions
they take pride in being
forward-thinking company rooted in
innovation the company strives to find
new ways to approach age-old problems in
the ever-evolving world of resource
development. (Shiba Inu)
Through innovation they have developed
an operational process to ensure that
they produce some of the highest quality
resources available on the market
PETROTEQ works with world-class
strategic partners to enhance production,
capabilities technologies and strategy.
The technology behind PETROTEQ success
is called "Clean Oil Recovery Technology"
or CORT. The versatile technology can be
applied to both water wet deposits and
oil wet deposits outputting high quality
oil and clean sand.
Furthermore CORT possesses significant
environmental advantages over historical
production methods. The technology
enables production from oil sands
without using water during the
extraction process.
As a result neither waste water nor
tailing ponds are created. It's a closed
loop system which means that 95% of the
solvents used in the extraction process
are recovered recycled and reused while
roughly five percent remain within the
oil that is extracted. And this
technology is versatile enough for use
on a variety of natural resources.
Chapman Engineering one of Canada's most
reputable environmental engineering
firms conducted an economic analysis of
(OTC: PQEFF) resource development process
and found the technology to be scalable
commercially viable and cost effective.
The technology extracts up to 99% of all
hydrocarbon contents, recycles up to 95%
percent of solvents.
A U.S patent and corresponding foreign
patents in Russia and Canada have been
issued that cover the significant
features of the system and process for
extracting oil from oil sands
also cover the key aspects of the
extraction process. PETROTEQ is committed
to producing energy that is essential to
propelling our global communities and
economies forward in a way in a way that
protects and restores the planet.
The technology consumes no water, has no
waste hailing ponds, produces no
emissions and cleans oil sands of
hydrocarbons returning a clean
sand as part of an overall esg strategy.
Asphalt Ridge is the company's primary
production operation.
The operation outputs consists of heavy
oil and sand products
the state of Utah is known to have a
total resource estimate ranging from 20
23 to 32 billion barrels of oil in place.
In fact Utah contains approximately 55
percent of the nation's total deposits.
These oil sands are classed as oil wet
deposits and consist of a mixture of
sand and a dense form of petroleum
referred to as bitumen or tear
the bitumen in utah is unique in that it
contains less than 0.5% sulfur.
Looking at the investors presentation we
can see a unique growth opportunity here
that includes significant contingent
resource (Shiba Inu)
and the potential to significantly
increase production their technology is
patented and they have experienced
leadership which we'll talk about in a
moment.
And very attractive economics
looking at the share structure there is
about 500 million
outstanding shares and a current market
capitalization of 56 million dollars
with the current price of 11 cents being
well below the 52-week high of 25 cents
we can see here that the company has
planned expansion phases 10 000 barrels
of high diesel oil has been produced to
date using the pilot facility at asphalt
ridge.
facility upgrade completed in april 2021
and a staggered edition
of two 5000 bpd production trains to
achieve 5000 in 2023 and 10 000 in 2024
with an expected resource life of more
than 20 years
in total the expected all-in cost will
average 25 dollars per barrel and they
have based their calculations on a
market price of 70 dollars per barrel by
these calculations they estimate that
from
production minus production costs the
company will expect ebitda of 37 million
in 2023 and 82 million by 2024 based on
plant size.
PETROTEQ responds to unsolicited
takeover bid
Vistan United Swiss AG has commenced a
conditional
unsolicited takeover bid to acquire all
the issued and outstanding common shares
of the company. PETROTEQ shareholders are
advised to take no action in respect to
the offer until petra tech's board of
directors has made a formal
recommendation to shareholders
so the board will assess the potential
deal before making any decisions
around this and I will look
at the offer in just a moment
PETROTEQ cautions its shareholders and
potential investors that there can be no
certainty that the offer will be
supported by the board or that any other
strategic transaction with any other
person will be pursued but PETROTEQ are
ultimately completed
so the board will evaluate the offer and
petrotex options including continuing to
operate the business to drive
shareholder value and potentially
exploring potential alternative
transactions so the board is saying that
they might not support this offer
and from the wording here we can
confidently say that they either have
other potential suitors for the company
or that they can confidently negotiate
for a better deal so should shareholders
be worried about this offer
should we be worried about an
unsolicited takeover bid
let's look at the deal that's on offer
vista united swiss ag commences all cash
offer to acquire PETROTEQ energy
incorporated the offer is for 74 cents
canadian in cash per common share the
offer represents a premium of 279
percent over the most recent ts xv
closing price and a 1 000 premium
over the volume weighted average price
for the 52 weeks
we can see here that the offer is open
for acceptance until 5 pm on february
7th unless the offer is extended
accelerated or withdrawn by the offer in
accordance with its terms so there's
plenty time here for the board to decide
what to do vistan united believes that
the offer is compelling and represents a
clearly superior
alternative to continuing on the course
set by the current petrotec board of
directors and management team for the
following reasons
firstly the obvious the price that they
are offering is multiple times the
current price
liquidity and certainty of value the
offer provides 100 cash for the common
shares giving shareholders certainty of
value and immediate liquidity
in the face of volatile markets and
against the backdrop of historically
poor performance of PETROTEQ shares
so this is a fair point the current
share price is already far higher
than it has been all year and vistan are
offering a huge premium on this the
status quo leaves shareholders with a
considerable risk
so they believe that the fact that
PETROTEQ has never been profitable
and has limited funds available will see
the share price drop if the offer is not
accepted
and then following on from this
there is a risk of significant dilution
to shareholders given that as of the
31st of may outstanding options warrants
and convertible debentures were
exercisable
and convertible into a total of 207
million common shares and the PETROTEQ
had disclosed
that it intends to issue further
convertible securities and common shares
in order to finance its operations
and development now i've spoken about
dilution so many times on the channel
and how I feel the delusion is not
always a bad thing
for example when a company does a share
offering to raise funds to make
acquisitions it can be a very good thing
under the right circumstances or where a
company needs funds to expand into new
markets it can definitely be a good
thing
delusion always needs to be assessed on
its merits but I have to be honest i
rarely see dilution in order to fund
current operations as a good thing
so this would worry me a bit
moving on the offerer
intends to fund the offer with cash
reserves available to vistan
who has secured on a firm committed
basis up to
420 million euros to fund the
consideration
payable for the common shares and to
complete the transaction
so the current market cap of PETROTEQ is
about 115 million dollars canadian
according to the tsx exchange which is
approximately 80 million euro
and vistan have secured up to 420
million euro to fund the deal so by some
very quick mats
they have secured funds to offer up to
five times the current share price
today's share price is only 20 cents u.s
so vistan already has the funds in place
to go as high as one dollar so the
current offer of 74 cents canadian is
still far below what they're willing to
offer this is a low ball offer
yes it will test management and
shareholders because it is fair above
the current price but it is still far
below what they are willing to pay
so the deadline of february just gives
plenty of time for negotiations and
counter offers
plus I would guess that they would be
able to secure more than this 420
million
if needed
the offer encourages shareholders to
read the full details of the offer set
forth in the offer to purchase
which contains the full terms and
conditions and other important
information
as well as detailed instructions on how
shareholders can tender their common
shares to the offer
and looking at reddit we can see that
about 60 percent of petrotech
shareholders
here would not be in favor of selling at
this price the one thing that I do know
is that it is a good time to be in
PETROTEQ right now with the offer
already on the table I think there is
potential here to make big gains
and the general feeling in the petritek
reddit community is that this offer is
nowhere near what the technology is
worth
in fact only a few weeks ago a reddit
poll asked what amount would be the
lowest the shareholders would accept
with the most popular vote being for
over
2.50 us
interestingly only 11 percent voted as
low
as 60 cents to one dollar
the current offer on the table is lower
than this
so I think that with this technology we
will see an improved offer
guys I called this stock weeks ago when
it was only 11 cents
and I said that this was a multi-bagger
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in the current environment in the world
this type of technology is a game
changer and I spoke about a few articles
that were written about PETROTEQ in my
last video
describing the technology
as PETROTEQ
being a company using advanced
technology that is eco-friendly and
profitable thanks to their efforts they
are leading the way towards a healthier
tomorrow
they are decarbonizing oil and gas
production by going carbon neutral with
their oil and gas production
the company has launched a series of
carbon neutral and carbon negative
initiatives to extract oil from sand the
process involves zero carbon emission to
air land or water resulting in no
environmental contamination at all
and also describing PETROTEQ energy as
the gold standard for feasible carbon
negative approaches in the oil and gas
industry
and let's not forget that over the next
two weeks the 2021 united nations
climate change conference is being held
the cop 26 discussing all the ways to
try and fight climate change and global
warming as usual the topic of oil
consumption and production will be high
on the list so the technology that
PETROTEQ has will become even more in
focus in the coming weeks
so guys that brings us to the end of the
video if you've watched all the way
through then hit that like button it
really helps the channel out a lot
what do you think will happen here in
the coming weeks drop me a comment and
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