GEOSENTRIC OYJ STOCK EXCHANGE RELEASE August 8, 2011 at 15:40
CONVERSION OF GEOSOLUTIONS HOLDINGS NV LOAN NOTES HAS TAKEN PLACE AND THE COMPANY IS NOW A MINORITY SHAREHOLDER IN GEOSOLUTIONS HOLDINGS NV
As announced on August 4, 2011 the Company has entered into a Subscription and Shareholders Agreement (“SSA”) with its lead investor in respect of its holdings in its previously wholly owned subsidiary, GeoSolutions Holdings N.V. (“GHNV”). The first part of the financing package as set out in the SSA has now been completed and involved the lead investor converting its existing preferred convertible notes (“Notes”) plus interest as issued by GHNV into newly issued shares of GHNV. This conversion, which was approved at the Company’s Annual General Meeting on June 29, 2011 as extended to July 1, 2011, leaves the Company as a minority shareholder in GHNV with approximately a 20% shareholding. As a result of the conversion and the fact that the Company now owns a minority percentage of GHNV, the Company will no longer be consolidating its previously wholly owned subsidiaries but will apply the equity method of accounting for its investment in GHNV in its group accounts. This will have the effect of reducing its reported group accounts revenues and costs in 2011.
This first part of the financing package will be followed by rights offerings as disclosed in the Company’s stock exchange release on August 4, 2011. Full details of the financing package, including the main terms of the SSA, will be released in the next few days with the EGM call.
GeoSentric Oyj
For more information, please contact: investors@gypsii.com
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