QS Energy, Inc. announced that it expects to receive $0.315 million in funding
November 09, 2020
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QS Energy, Inc. announced that it has signed a term sheet and note purchase agreement with accredited investors for a private placement of convertible promissory notes for minimum gross proceeds of $22,500 and maximum gross proceeds of $315,000 on November 9, 2020. The notes do not bear an interest rate, and have a maturity date of 12 months from the closing date. The notes will be issued in the face amount equal to 110% of the investors’ commitments. The notes are convertible into common shares at a price of $0.02 per share. If the notes are not paid in full by the maturity date, the balance remaining on the maturity date shall be increased by 10% and the company shall be required to pay interest at a rate of 10% per annum. As a part of the transaction, the company will also issue warrants which shall be exercisable at $0.03 per share for such number of shares equal to 50% of the result obtained by dividing the face amount of the notes issued simultaneously with the warrant by the conversion price. The transaction is expected to close on or before April 30, 2021. The transaction will include participation from accredited United States investors and non United States investors. The company will issue securities pursuant to the exemption provided under provisions of Section 4(a)(2) under the Securities Act of 1933, as amended or Rule 506 of Regulation D. The minimum investment accepted from any investor is $5,000. The securities issued in the transaction are subject to restrictions on sale and transfer. The transaction has been approved by the board of directors of the company, and is not subject to the approval of its shareholders. The investor will not pay or receive any finder’s fee or commission in respect of the consummation of the transactions contemplated by the agreement.
QS Energy, Inc. develops and seeks to commercialize energy efficiency technologies that assist in improving the economics of oil transport and reducing greenhouse gas emissions. Its intellectual properties include a portfolio of domestic and international patents, a substantial portion of which have been developed in conjunction with and licensed by it from Temple University of Philadelphia, PA. Its primary technology is called Applied Oil Technology (AOT), a commercial-grade crude oil pipeline transportation flow-assurance product. AOT is engineered specifically to reduce pipeline pressure loss, increase pipeline flow rate and capacity, and reduce shippersâ reliance on diluents and drag reducing agents to meet pipeline maximum viscosity requirements. Its AOT crude oil viscosity reduction technology directly targets the heavy crude oil transportation industry, initially targeting the midstream crude oil pipeline operations which deliver high volumes of heavy crude oil to market.