The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
talking of Quadrise, see Premier Miton (Investment Managers) have taken a 8.7% in Quadrise - announced today by QFI (this will be part of the recent institutional fund raise)
https://premiermiton.com
Peeps don't seem to get it - the Quadrise opportunity is very much secondary at this junction. Valkor have one priority that is to get the current plant fine tuned and commercially proven.
If you read the Petroteq website the plan is for plant to capable of producing low carbon heavy oil with different end user/products. The bunker fuel product although valuable is simply another sales line.
Keep in this mind this - if the plant trials are not successful forget about Quadrise, Tomco 10K plant etc etc There is nothing if the plant/technology fails.
Greenfield are on charge and running of the trials - so the timetabling is not down to Petroteq.
On timescales, just go with what Tomco said in the recent financials - Q1 2021. That can be anytime in the next 3 weeks, Q1 ends 31/3/2021.
TMX stock exchange rules, shorty summary attached- it looks like George Stapleton was buying at a time when trials had not been completed - clearly so otherwise he couldn’t have bought as that would have been regarded as acting on material unreleased information- obviously against the rules - so imo he bought his shares on the two occasions thinking/speculating that the trials would work out;
...and on Petroteq notifying the market on current developments it depends on definition of material news - the Exchange sets out guidelines but it seems from attached the company can set out its own internal rules, within reason. Note though there is no 30 day rule associated with an insider buying and the timing of news which makes sense. If and when they have material news they have to release it, simples.
It seems pretty obvious that the trial is taking longer than envisaged, I had heard that the Utah winter weather has played a part in this. Fingers crossed Valkor are now close to perfecting the plant - they need this to work for many interested parties.
https://www.tsx.com/resource/en/70
But note Valkor are contractually committed working for Petroteq for 4 years from 1/5/2020. Terms were disclosed in the recently Petroteq filed accounts - as no notice was given (why would they) Valkor are tied in for next 4 years. Valkor will be involved with the next 3/4,000 bopd plant (assuming all goes well).
32. SUBSEQUENT EVENTS (continued)
(f) Management and Operations Services Agreement
In terms of a Management and operations Services Agreement (“Management Agreement”) entered into between the Company and Valkor LLC, (“Valkor”) dated November 22, 2020, effective May 1, 2020, Valkor will provide overall management and operations services at the oil sands recovery plant based in Utah. The agreement is for a period of one year and is renewable automatically for an additional four years unless either party provides the other party with written notice of non-renewal at least 90 days prior to the expiration of the original or renewal term.
As registered owner of the heavily patented technology Petroteq imo is much more likely to "taken out" by a major - well before any licensee. eg Greenfield et al.
Today Petroteq has a market cap of just $28M. The share price is not quite but pretty much at all time lows.
For each plant Petroteq grants an operating licence (remember whilst Greenfield has a multi US licence it has been issued on a non exclusive basis - so potentially other US players can set up their own plant on similar terms) they will receive a $2M signing on licence fee + 5% of the annual plant revenue.
So based on numbers below, for just one 10K plant Petroteq receive $2M licence fee + annual royalties - $13M.
So substantial recurring annual royalties will accrue to Petroteq - ignoring $16M upfront license fees - on say 7-8 x 10K plant (for starters) commissioned US/internationally over the next 2-3 years, it would mean annual revenue of $100M to Petroteq. Basically pretty much all profit. What p/e would you would put on that then? This is why the founders of Petroteq have their eye on achieving a billion dollar valuation for the company. The numbers clearly show that should not difficult to achieve on a relative small plant roll out. If the technology is proven (imo expected) you can see precisely why a major O&G player or an Investment Fund (Green tech funds have attracted huge sums waiting to find suitable targets) would want to move soon on Petroteq. The longer it is left to role out new plants (and remediation programmes) the higher the valuation. Simples.
Just my take - but a very real proposition.
All done - institutions buying in. Watch the QFI share price shift .
Note investor presentation on 8/3 - listen out for update Re samples.
“Quadrise Fuels International, the supplier of MSAR® and bioMSAR™ emulsion technology and fuels, which are low-cost, cleaner alternatives to heavy fuel oil, is pleased to announce the successful results of the Placing announced on 1 March 2021 and to confirm the launch of the Open Offer to Qualifying Shareholders.
The Company has conditionally raised total gross proceeds of £6.0 million pursuant to the Placing of 222,222,222 Placing Shares at the Placing Price of 2.7 pence per Ordinary Share. The net proceeds of the Placing of approximately £5.5 million are expected to be supplemented by additional proceeds of up to £1.0 million to be raised pursuant to the Open Offer.”
Yep - for them to raise £6-7M at the current share price is very positive- ie no heavy discount - they will institutional investors lined up - they have a couple of near term products which they obviously like - plus - fingers crossed - bunker fuel after testing.
32. SUBSEQUENT EVENTS (continued)
(f) Management and Operations Services Agreement
In terms of a Management and operations Services Agreement (“Management Agreement”) entered into between the Company and Valkor LLC, (“Valkor”) dated November 22, 2020, effective May 1, 2020, Valkor will provide overall management and operations services at the oil sands recovery plant based in Utah. The agreement is for a period of one year and is renewable automatically for an additional four years unless either party provides the other party with written notice of non-renewal at least 90 days prior to the expiration of the original or renewal term. The company will reimburse Valkor for all costs and expenses incurred, as defined in the agreement, plus a Personnel Management Fee of 12% of the personnel costs and expenses and an operations Management Fee of 5% of the operations costs and expenses.
Valkor will provide the Company with quarterly production reports, including the following; (i) the quantity of oil bearing ore and sediments mined, extracted and produced from each of the leases and delivered to the plant; (ii) the quantity of oil products produced, saved and sold at the plant; (iii) the quantity of consumables purchased and used or consumed in operations and (iv) the gross proceeds derived from the sale of the oil products including applicable taxes and transportation costs incurred by Valkor.
Valkor will also provide quarterly operating reports detailing; (i) revenue received by Valkor from oil products sold; (ii) a detailed accounting of all costs and expenses; (iii) the operations Management fee and the Personnel Management fee earned during the quarter.
Valkor will also produce quarterly Royalty Reports to be delivered to a third party to calculate royalties due to the holders of royalty interest under the various mineral rights leases.
This is interesting - from the 2020 Petroteq accounts issued recently - according to exert below Valkor will running the Petroteq plant for the next 4 years - effectively from May 2020 - otherwise the 90 day notice would had to been issued, why would they. So Valkor will be overseeing the next upgrade plan to 3/4,000 bopd.
Valkor are going to be very busy with Petroteq and Greenfield if all goes to plan.
Petroteq up 17% on TMX last night.
COO buying news was released very late - see what happens next week.
Expecting news - game changer indeed. Fingers crossed:
"Petroteq has developed a game changing, environmentally friendly, proprietary oil sands extraction technology which is suitable for all mined oil sands deposits. This breakthrough closed-loop technology may also be suitable for environmental remediation projects. After the restart of its first extraction plant in Vernal, Utah, and certification of the CORT (“Clean Oil Recovery Technology”) process the Company will shift to scaling up capacity by targeting several additional, higher-capacity extraction units within the state, which has over 30 billion barrels of undeveloped but recoverable oil (DOE Estimate). Asphalt Ridge, the location of Petroteq's plant, is one of Utah's 8 major oil sands deposits.
https://petroteq.energy/about/overview
https://s3.amazonaws.com/content.stockpr.com/sec/0001062993-21-002002/0001062993-21-002002.pdf
Why would he be buying? Lol