Stockholm, 2013-12-13 08:52 CET (GLOBE NEWSWIRE) --
The first convertible C1 was unconditioned and amounted to 30 million SEK, with maturity to 31 December 2013. Both parties had the right to request the conversion. C1 was aimed for investment in Shelton Petroleum operations in Russia. Shelton Petroleum acquired the funds and the investments have been implemented with good drilling results. C1 has since been converted to shares.
Petrogrand AB has requested the conversion of Convertible 2 of 185 249 280 SEK to 9 262 464 newly issued B-shares in Shelton Petroleum AB, as stated in press release per 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.
The urrent situation does not benefit the companies or its shareholders. The boards of Petrogrand and Shelton Petroleum are now conducting constructive negotiations and seek a common solution that is acceptable for both parties. The parties make the mutual assessment that an extensive solution can create significant value for both companies.
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.
