Stockholm, 2014-04-04 15:27 CEST (GLOBE NEWSWIRE) --
The acceptance period of Shelton Petroleum’s AB ("Shelton Petroleum") offer to Petrogrand AB's ("Petrogrand") shareholders (the "Offer") expired on 28 March 2014. Only 3.4 percent of the shareholders in Petrogrand chose to accept the Offer after the acceptance period was extended and the Offer was raised from 0.34 to 0.44 Shelton Petroleum B-shares for each share in Petrogrand.
The Board of Petrogrand believes that the conditions for Shelton Petroleum’s offer has not improved for the shareholders of Petrogrand, as no response has been provided by Shelton Petroleum regarding the uncertainties pointed out and questioned by Petrogrand in previous press release from 10 March 2014.
The share price of Shelton Petroleum has fallen since the announcement of the Offer. On 2 April 2014 the closing price was SEK 18.30 per Shelton Petroleums-B share. The closing price in Petrogrand on the same date, on 2 April 2014 was SEK 8.90. The Offer of 0.44 Shelton Petroleum B shares for each share in Petrogrand values the share of Petrogrand to approximately SEK 8.05, which corresponds a discount of approximately 9.5 percent compared to the closing price of 8.90 on 2 April 2014.
Accordingly, the Board has unanimously decided to once again, for reasons stated in previous statements, recommend that the shareholders of Petrogrand do not accept the Offer, which is verified by the independent fairness opinion that was made by ABG Sundal Collier.
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.
