QS Energy, Inc. announced that it expects to receive $0.2 million in funding
October 14, 2021
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QS Energy, Inc. signed term sheet and securities purchase agreement with investors for a private placement of convertible promissory notes for minimum proceeds of $25,000 and maximum proceeds of $200,000 on October 15, 2021. The minimum individual investment amount is $5,000. 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 $0.03 per share. Each note can be repaid without penalty on or before the maturity date. 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. The warrants shall be issued at the same time each note is issued to the purchaser hereunder and shall be exercisable at $0.04 per share for such number of shares equal to 100% of the result obtained by dividing the face amount of the notes issued simultaneously with the warrant by the conversion price. 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 Regulation D. 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 closing date of this offering is on or before November 30, 2021.
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.