Stockholm, 2013-12-18 08:35 CET (GLOBE NEWSWIRE) --
As stated in earlier press release the Boards of Petrogrand AB and Shelton Petroleum AB have had negotiations on a solution on conversion of Convertible 2, which would benefit both companies and their shareholders.
The Board of Petrogrand notes now that conditions are lacking in order to reach an agreement between the companies regarding additional capital to Shelton Petroleum beyond the Convertible 2.
Petrogrand will now convert Convertible 2 with the intention that this capital will allow Shelton Petroleum to continue investing for the benefit of the shareholders of both companies. As the disagreement persists regarding Petrogrand's right to conversion, Petrogrand will let court decide the issue.
Background
Petrogrand has requested the conversion of Convertible 2 of SEK 185 249 280 to 9 262 464 new B-shares in Shelton Petroleum AB, which was presented on 9 December 2013.
The two companies have entered into an agreement dated 10 July 2013, which governs the transaction and how it will be implemented. There is a disagreement between the parties regarding Petrogrand’s right to convert the Convertible 2, referring to the terms of the agreement of 10 July 2013.
Convertible 2 is an independent financial instrument and is as such not subject to the agreement of 10 July 2013. According to Petrogrand's opinion, there is no breach of the terms of the Convertible 2 and therefore Petrogrand has continued to request the conversion.
This is a translation of the Swedish version. In case of any discrepancy between the English and the Swedish version, the Swedish version shall take precedence.
For further information, please contact:
Maks Grinfeld, CEO, phone: +46 8 5000 7810 Mikael Wallgren, Chairman, phone: +46 8 5000 7810 Certified Adviser First North: Mangold Fondkommission AB
Reasonable caution notice: The statement and assumptions made in the company's information regarding Petrogrand AB's ("Petrogrand") current plans, prognoses, strategies, concepts and other statements that are not historical facts are estimations or "forward looking statements" concerning Petrogrand's future activities. Such future estimations comprise but are not limited to statements that include words such as "may occur", "concerning", "plans", "expects", "estimates", "believes", "evaluates", "prognosticates" or similar expressions. Such expressions reflect the management of Petrogrand's expectations and assumptions made on the basis of information available at that time.
These statements and assumptions are subject to a large number of risks and uncertainties. These, in their turn, comprise but are not limited to I) changes in the financial, legal and political environment of the countries in which Petrogrand conducts business, II) changes in the available geological information concerning the company's projects in operation, III) Petrogrand's capacity to continuously guarantee sufficient financing to perform their activities as a "going concern", IV) the success of all participants in the group, or of the various interested companies, joint ventures or secondary alliances, V) changes in currency exchange rates, in particular those relating to the RUB/USD rate. Due to the background of the many risks and uncertainties that exist for any oil-prospecting venture and oil production company in its initial stage, Petrogrand's actual future development may significantly deviate from that indicated in the company's informative statements.
