Let's talk about oil stocks. What's up
investors and welcome back to the
channel today. I want to talk about what
I consider to be a no-brainer stock to
buy right now. (OTC:PQEFF, TSX:PQE)
Petrotec Energy is traded on the otc
ticker pqeff and the canadian stock
exchange ticker pqe. it is rare in
today's market to be talking about a
stock that is all but certain to gain
close to 200 percent at a near zero risk
but that is exactly what we have with
this 20 cents penny stock. over the past
few weeks there's been a lot of
negativity that has drove the share
price down and cast some doubt over this
potential takeover bid, but (#petroteq)
Is this a penny stock to buy right now?
In the past 24 hours we have had several press
releases that I feel make this a bergen
stock to buy now I first brought you
this 500% opportunity back in october
when the stock was only 11 cents but
today at 20 cents there is a huge
opportunity for quick profits on this
penny stock. Insiders are buying up the
stock with the intention to make the
exact same gains this stock price is
crazy right now in this video I will
look at the very latest developments and
some of the risks that are present over
the next few weeks so if you enjoyed
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i want to point out that i'm not a
financial advisor and this is not
financial advice now let's get into this
week's latest news.
In the past week Petroteq shareholders
issued a statement to remind the board
of directors of the fiduciary duties
shareholders of petrotek are extremely
alarmed and concerned by actions that
the board of directors have approved to
the detriment of the company
now this is huge if you are not familiar
with what is going on at petrotec over
the past few months I will discuss
everything in a moment but the first
thing I want to talk about is this
because it is relatively rare to see
shareholders feeling the need to
publicly remind
directors of their duties
and it is in response to this Petroteq
announces equity offering of up to 2.5
million dollars
the board has entered into an agreement
with canton research offering up to 12.1
million units of the company
at 20 cents per unit for proceeds of up
to 2.5 million dollars each unit
consists of one common share of the
company
and one half of a common share purchase
warrant
each warrant will be exercisable to
acquire one common share for a period of
24 months following the closing of the
offering at an exercise price of 27
cents per share
with the board stating
that the company intends to use the
proceeds of the offering for working
capital and general corporate purposes
in addition the placement agent will be
entitled to up to 2 million
non-transferable broker warrants on the
assumption the offering is fully
subscribed
each broker warrant will be exercisable
to acquire one common share
for a period of 24 months at an exercise
price of 20 cents per share
so this was announced last week and to
be honest I was very surprised to see
this with the takeover offer that is on
the table
and nearing a conclusion within the next
few weeks I cannot understand why the
company felt the need to cast out on the
whole transaction
this deal not only caused the stock
price to crash over 30 percent
but it also cast out over the entire
takeover deal
besides
continual dilution an extended seized
trade order
a seemingly unelected board of directors
with no financial stake in the company
and a revolving door of executives there
is much to be displeased with in regard
to the current operations of the company
which has been unable to fund a plant or
meaningfully
monetize any of its substantial and
valuable ip
make no doubts about this as I see it
Petroteq ($PQEFF) has been badly mismanaged
over the past few years but the
technology that they have is worth a lot
of money hence the takeover bid
but the recent actions of the company
have jeopardized this offer inexplicably
for unknown reasons and in economically
uncommercial terms
the company which has almost no
employees or field activities and
therefore has no reason why it needs to
raise capital
at this moment
putting the vistan united offer in
danger
as part of vistan's offer
knowing the proclivity of the company to
hand out shares like monopoly money put
a maximum outstanding share limit of 795
million on a fully diluted basis as of
the last corporate filing there are
currently
788.8 million shares on a fully diluted
basis issued so the equity offering of
12 million
shares 6 million warrants and a further
2 million warrants puts petrotex
outstanding share count above the vistan
united offer conditions that were laid
out
this directly contradicts what the
company has said regarding their support
of the vistan offer and violates one of
the key conditions for closing of the
vistan offer
it is clear that the company is not
looking out for the best interest of
shareholders and in this regard
there is a short list of demands
including that the board must execute
its duty and cancel this equity offering
immediately
all legal remedies will be considered if
the board continues to endanger
shareholder value so overall this is
beginning to get very messy very quickly
and as I have said already this has had
an effect on the share price
being down more than 30 since the equity
offering and over 40 since may 25th
but we have just had some further vital
updates in the past 24 hours that will
have a huge impact on this
and I believe will show the current 20
cent share price to be an absolute
bargain.
So what exactly is this all about?
What makes this company so valuable?
In short, Who are petrotec energy?
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 ($PQEFF, #PQE) 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
through innovation they have developed
an operational process to ensure that
they produce some of the highest quality
resources available on the market
petrotec 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 court the versatile technology can be
applied to both water wet deposits and
oil wet deposits outputting high quality
oil and clean sand ($PQEFF)
furthermore court 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 5
remain within the oil that is extracted
and this technology is versatile enough
for use on a variety of natural
resources (OTC:PQEFF)
chapman engineering one of canada's most
reputable environmental engineering
firms conducted an economic analysis of
Petroteq's 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
of solvents (TSX:PQE)
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
now it's very important to understand
that Petroteq has this offer on the
table for anyone who is new to this dock
and does not quite understand why
exactly I feel that this is an absolute
no-brainer at the current price let's
take a look at the terms and conditions
of this buyout agreement
this didn't remind shareholders of the
following key terms and conditions of
the offer
shareholders will receive 74 cents
canadian in cash for each common share
that is 74 cents for every share that is
tindered and given today's exchange rate
74 cents canadian equals 58 cents u.s
the current petrotech share price is 20
cents so there is a 190 gain to be made
from the current price for doing
absolutely nothing other than buying
shares tindering their shares and
waiting until mid-july for payday
this is not an opportunity that i
expected would still be on the table
when I first spoke about this stock and
about this buy-out offer back in october
when the stock was at 11 cents
but here we are in june
2022 and shares can still be tindered
the only thing that stands in the way of
this deal is the delusion that I spoke
about already and I will look at
vistin's response to this in a moment
and the other issue is getting the
takeover approved by the committee on
foreign investment in the united states
but on may 25th visiting united
announced that the 45-day notice review
period had commenced in connection with
the notice formally submitted by the
offerer and Petroteq with the cfius
in connection with the offer
on may 24th the united states department
of the treasury notified the offer that
the notice has been accepted by the cfi
us for review and the 45 day notice
period commenced on may 24th
and that the review will conclude no
later than july 7th
vincent and the offer currently intend
to extend the offer
to a date after july 7th
in order to allow additional time for
the offer to obtain clearance under u.s
national security regulations but in the
past 24 hours bisden announced that they
have approached petritek to seek further
information on petritek's recent
announcements and filings regarding an
upcoming meeting of shareholders to be
held on july 21st and the private
placement of units announced on june 2nd
which I spoke about
Petroteq has confirmed their continued
support for the offer and recommendation
to Petroteq shareholders too tinder
Petroteq has no plans or intentions to
engage in any defensive or other tactics
that could prejudice the offer and in
particular satisfaction of the
conditions to the offer without the
consent of visiting but most importantly
piston has indicated that it intends to
increase the threshold
under the no change in capitalization
condition to
811 million issued and outstanding
common shares on a fully diluted basis
to accommodate that private placement
this should mean that the recent
financing won't impact the deal going
through which is a big relief
and they have extended the expiry date
for acceptance
out to july 22nd the day after petch
tech shareholder meeting so the only
thing that we are waiting for right now
is for the cfr us to clear the
transaction
this is not something that I expect
there to be any issues with
the cfius
job is to review transactions involving
foreign investment in the us in order to
determine the effect of such
transactions on national security of the
united states
i do not see how this takeover of
Petroteq would in any way affect
national security so I do not see this
being an issue either way we will be
hearing about this in the coming weeks
so guys before we get to the end of the
video if you've watched all the way
through please hit the like button it
really helps the channel out a lot and
in my opinion this is an absolute
no-brainer
but that is just my opinion and not
financial advice because i'm not a
financial advisor I hope you found value
in this video
but always do your own research never
take the opinion or advice of anyone on
youtube or any social media without
doing your own due diligence
of course feel free to watch some of my
other pets tech videos for more details
about the company there's links to this
in the descriptions below or on the
playlist that's in the top right hand
corner
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