Chester Holdings, Ltd. Announces Acquisition.Business Editors/Energy Writers SIMPSONVILLE, SC--(BUSINESS WIRE)--June 26, 2001 CHESTER HOLDINGS, Ltd. (Pink Sheets: CHES) today that it has entered into an agreement to acquire all of the issued and outstanding stock of Red Mountain Energy, Inc. Located in Scottsdale, AZ, Red Mountain Energy, Inc. is involved in the exploration for and production of Coalbed Methane Coalbed methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, and other countries. in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century and Canada. The Agreement calls for Chester to issue Convertible Preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". to Red Mountain in exchange for all of the issued and outstanding shares of Red Mountain. The management of Red Mountain Energy, with many years of experience in the "CBM CBM Commodore Business Machines CBM Coalbed Methane CBM Christoffel Blindenmission CBM Condition Based Maintenance CBM Confidence-Building Measures CBM Curriculum Based Measurement (education) CBM Cubic Meter " industry, intends to assume management responsibility for the combined company. Michael O'Shea, President of Chester Holdings, Ltd. will continue as a Board member. Michael O'Shea, President of Chester, commented, "This acquisition should finally allow a management team the opportunity to reorganize Chester and allow it to move forward as an operating entity. Red Mountain Energy is a well-funded exploration company with an experienced management team and I look forward to working with them. Also, this acquisition, and the resulting new management and Board, will not effect the current agreement in place between Chester and Probity PROBITY. Justice, honesty. A man of probity is one who loves justice and honesty, and who dislikes the contrary. Wolff, Dr. de la Nat. Sec. 772. International concerning the licensing of the Probity Gradient in China." The management of Red Mountain Energy, Inc. will shortly announce its plans concerning Chester as well as a new shareholder information network. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995; to the extent that this press release makes statements about the future, such statements are forward looking and subject to a number of risks and uncertainties, including, but not limited to, the inability to meet all of the required reporting requirements. These risks could effect the ability of the Company to complete acquisition and successfully reorganize and resume operations as stated in any forward looking statements by, or on behalf of the Company. There is no assurance that the Company will be able to achieve any of its intended objectives. |
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