Carbures has filed a lawsuit against Emerging Market Intrinsic for illegal speculation with its shares

The Company is claiming 150 million in the lawsuit filed with the New York Supreme Court.

• Carbures has filed a lawsuit with the Court of New York against the fund Emerging Market Intrinsic (EMI) for illegal speculation transactions which are harming its listing.

• It is claiming 150 million dollars for the damages caused to the Company due to the drop in its share price, among others.  

• The Company closed a financing transaction with said fund for seven million in September and the lender is allegedly speculating in the market with the shares pledged as a guarantee for the loan.

Madrid, 27 November 2015. Carbures has detected speculative transactions it considers to be illegal with the Company's shares in the latest sessions, especially since 23 November, which are causing it to sharply fall in the stock market. For this reason, the Company filed a 150 million dollar lawsuit on 23 November with the Courts of New York against Emerging Market Intrinsic (EMI) as it has detected the illegal negotiation and lending of Carbures shares which were pledged exclusively as a guarantee for a financing transaction formalized by the Company.  

On 25 September, Carbures signed a financing transaction for seven million euros to be disbursed in two instalments of three and four million with the company Emerging Market Intrinsic (EMI). To date, Carbures has received the first instalment of the loan which totalled three million. Certain shareholders in the Company deposited 6,315,789 shares as a guarantee for the loan.

The terms of the agreement signed establish that neither the lender nor the custodian may loan, sell or engage in any other transaction with the shares offered as collateral. After filing the lawsuit, EMI chose to quickly liquidate all of the shares it held as a guarantee.  Since they were shares deposited as a guarantee for said loan, the shares should not be negotiated or lent and, therefore, Carbures has decided to take legal action against the lender, loan agent, their management and the custodian in order to stop and reverse such activity which is adversely affecting its listing value without any fundamental change in the company's business as the Company's business is evolving as outlined in its business plan.

 "We will not permit illegal speculation with our listing because it is seriously harming us and does not reflect the industrial reality of the increased workload we have seen in 2015 and the portfolio of projects already signed by the Company," stated its Chairman, Rafael Contreras.

 "It is unacceptable for the Company's listing to be suffering due to shameless speculation and it does not correspond to its industrial capability," he added.