GEOSENTRIC OYJ STOCK EXCHANGE RELEASE August 10, 2011 at 17:00
FURTHER ISSUE OF SHARES BY GEOSOLUTIONS HOLDINGS NV HAS TAKEN PLACE and SHORT TERM FUNDING HAS BEEN SECURED
As recently announced, 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 was completed on August 4, 2011 and left the Company as a minority shareholder in GHNV with approximately a 20% shareholding.
As disclosed on August 4 and August 8, 2011 first part of the financing package will be followed by GHNV rights offerings to be executed in two tranches. The first tranch of the GHNV rights offering as agreed in the SSA has now been completed whereby GHNV raised an investment of €750,000 by issuing new shares to the lead investor at a price equivalent to a 90% discount to the implied price used in the conversion of the Notes. This share issue results in the Company’s holdings in GHNV to be just above 15%. €150,000 of this financing will be paid by GHNV to the Company as a fee in accordance with the terms of the SSA. This financing secures the cash requirements of the Company and GHNV until the end of September 2011. The Company and GHNV then plan to complete further share offerings which, if successful, will secure both companies cash requirements through Q3 2012.
As previously reported, if the Company secures shareholder approval for the required elements of the financing package and participates in the planned further GHNV share offering to its agreed share in full, corresponding to an investment of approximately €1m, it will secure a holding of approximately 24% in GHNV. To raise the required funds to participate in the further GHNV share offering, the Company intends to arrange its own share issue to be completed by the end of September 2011. In the event that the Company did not participate in the further GHNV share offering, this would lead to dilution of Company’s ownership in GHNV to an approximate 9 % holding in GHNV.
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
Distribution:
NASDAQ OMX Helsinki
Principal news media