Enclosed is the annual report 2010 for PSI Group ASA.
Regarding the sale of SQS Security Qube System AB (SQS) with references to announcements released on 21. February and 18th of March 2011, the transaction is still not completed and hence the consideration has not yet been received by PSI.
The buyer has not yet met its payment obligations and have requested additional time. The transaction has not yet been cancelled by PSI.
PSI has fulfilled all its obligations according to the contract.
However, because of the uncertainty as to when payment, if any, may take place, the board of directors have decided to review alternative financing solutions and to engage SEB Enskilda to consider a process for a private placement of new shares in order to secure that PSI establishes a sufficient capital structure in addition to meeting its covenants under its loan agreements - also if completion of the sale of SQS should fail. The estimated placement amount is MNOK 80 and the placement will in any event be subject to approval by an extraordinary general assembly.
If the private placement is completed, PSI's intention is to keep SQS as a PSI business unit. The private placement will not be completed if the sale of SQS in the meantime is completed.
In the event that the private placement is completed, it will also be considered to conduct a repair offering whereby all existing shareholders who are not invited to participate in the private placement will be given the opportunity to subscribe shares at the same subscription price as in the private placement.
An English version of the annual report will be available within the next days. The audit report from the Company's auditor Ernst & Young has been issued with an explanatory paragraph.
For additional information please contact:
Jørgen Waaler
CEO of PSI Group ASA
Phone +47 905 90 010
About PSI Group
PSI Group is the leading global provider of closed and secure cash handling solutions wherever money moves.
PSI Group is head quartered at Rælingen (Norway) and has about 310 employees in Scandinavia and Europe. The company is listed on the Oslo Stock Exchange and Nasdaq OMX in Stockholm.
For more information please visit www.psigroup.no
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
