Shelton Petroleum has been informed by Petrogrand that they have withdrawn their request to convert Convertible 2. Since the cut-off date 31 December 2013 has passed and the conditions in the agreement have not been fulfilled, conversion will not take place.
Since the beginning of December, when Petrogrand in breach of the agreement between the companies requested conversion of Convertible 2 of SEK 185 million, there has been a dispute between Shelton Petroleum and Petrogrand. Petrogrand has now withdrawn its request and there is therefore no risk that conversion will take place.
Due to the dispute, there have been a number of court cases between the companies during December. Petrogrand has, in a letter to the District Court, now withdrawn its actions against Shelton Petroleum.
"As a result of Petrogrand's withdrawal, the issue of conversion in breach of the agreement has been solved. The management of Shelton Petroleum now hopes to be able to focus on operations rather than costly and time-consuming legal proceedings", says Robert Karlsson, CEO of Shelton Petroleum.
Petrogrand has confirmed the withdrawal of their request for conversion in a press release dated 2 January 2014.
Source: Shelton Petroleum
