BioteQ Environmental Technologies Inc.

TSX : BQE


BioteQ Environmental Technologies Inc.

December 02, 2013 20:34 ET

BioteQ Files Preliminary Prospectus for $1.2M Rights Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 2, 2013) - BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in industrial wastewater treatment, has filed a preliminary prospectus in respect of a proposed rights offering (the "Offering"). Under the Offering, BioteQ expects to raise gross proceeds of approximately $1.2 million. The proceeds from the Offering will be used to fund operating expenses and other general working capital needs as the company progresses towards its target of becoming cash flow positive from operations in the second half of 2014.

Under the proposed terms of the rights offering, shareholders of record in qualifying jurisdictions will receive rights to subscribe for common shares ("Rights Shares") in the capital of BioteQ. In support of the Offering, the Company has entered into a standby purchase agreement with Mr. Richard Hubbard ("Hubbard"), a shareholder of the Company, under which Hubbard has agreed to purchase from the Company any Rights Shares that are not otherwise subscribed for by other shareholders under the Offering (the "Standby Shares").

In consideration for Hubbard agreeing to subscribe for the Standby Shares, Hubbard will be entitled to a cash fee at the closing of the Offering equal to 4% of the gross proceeds of the Offering, being $48,000, and warrants to purchase an additional number of Common Shares equal to 4% of the total number of Rights Shares to be issued under the terms of the Offering. The warrants will be in effect for a period of two years from the date of the final short form prospectus regardless of how many Rights Shares the Standby Purchaser actually purchases pursuant to his standby commitment. The final exercise price and number of warrants will be determined at the time the Final Prospectus is filed.

The Offering is being made to holders of common shares in all provinces of Canada, other than Quebec and may be made to holders in certain foreign jurisdictions in reliance on exemptions from the prospectus or registration requirements of such jurisdictions (the "Eligible Jurisdictions") as described in greater detail in the preliminary prospectus.

The number of common shares to be issued, the number of rights required to purchase one common share, the subscription price per common share, the record date and the expiry date of the rights offering will be determined at the time of filing the final prospectus. Further details concerning the rights offering are contained in the preliminary prospectus, which has been filed on SEDAR at www.sedar.com.

The Offering remains subject to regulatory approval, including the approval of the Toronto Stock Exchange.

The Offering is not an offering of Rights or Rights Shares for sale in any jurisdiction other than the Eligible Jurisdictions. The Rights and Rights Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act"). This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein. Such securities may not be offered or sold in the United States absent registration under the US Securities Act and applicable state securities laws, or absent an available exemption from such registration requirements.

BioteQ Corporate Profile

BioteQ is an innovative clean technology leader in global industrial water treatment, serving the mining and energy markets. The company has technology expertise and proven operational capabilities in sulphide precipitation, ion exchange, alkali/lime precipitation, leaching, sulphate removal and SART technology. Over the past decade, BioteQ has designed and commissioned waste water treatment plants at mine sites for leading organizations including Xstrata, Freeport McMoran, Jiangxi Copper and the US EPA. These plants recover dissolved metals and/or remove substances such as sulphate and selenium, producing clean water and minimizing or eliminating residual waste. BioteQ is headquartered in Vancouver, Canada and trades on the TSX under the symbol BQE. Please visit our website at www.bioteq.ca for additional information.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain information contained herein may not be based on historical fact and therefore constitutes "forward-looking information" under applicable Canadian securities legislation. This includes without limitation statements containing the words "plan", "expect", "project", "estimate", "intend", "believe", "anticipate", "may", "will" and other similar words or expressions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's dependence on key personnel and contracts, uncertainty with respect to the approval and completion of the Offering in a timely manner, if at all, profitability of the Company's technologies, competition, technology risk, the Company's ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company's ability to manage growth and other factors described in the Company's filings with the Canadian securities regulators at www.sedar.com (including without limitation the factors described in the section entitled "Risks and Uncertainties" in the Company's Annual Report for the year ended December 31, 2012 and the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2012). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements. All forward-looking information contained herein is based on management's current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law.

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