GEOSENTRIC OYJ STOCK EXCHANGE RELEASE June 20, 2011 at 15:30
FINANCING UPDATE, INDICATIVE AND NON-BINDING ALTERNATIVE FINANCING PROPOSAL RECEIVED AND BEING REVIEWED, APPROVAL DEADLINE SET FOR JUNE 22ND
As previously announced on June 1, 2011 the Company has engaged in discussion about possible alternative or additional funding proposals with the lead investor and a number of existing major shareholders within the time limits allowed by the funds available. To enable these negotiations to continue the Company requested a bridge financing from all the major holders involved in the negotiation process. The lead investor was the only holder willing to participate, and made the bridge funding of 750k€ available to the Group on terms announced to markets on June 8, 2011. This bridge funding will secure Group’s operations until the end of June.
The Company has now received an indicative non-binding alternative funding proposal from a group of Company’s largest shareholders. The proposal is alternative to Company’s lead investor’s proposal that was delivered to the Company in April 2011 (“Proposal”). The Company is in a process of reviewing the terms of this alternative proposal. The deadline for Company’s response to the proposal is set for Wednesday, June 22, 2011. Based on its preliminary review the Company has concluded that to fully understand and assess the alternative proposal certain clarifications from the group of largest shareholders that has issued the proposal are still required.
The Company expects to complete the review of the alternative proposal by Wednesday, June 22, 2011. The Company will make its decision in the matter based on the outcome of this review and comparison between the alternative proposal and the Proposal by the lead investor, which decision with the required supporting information will be released to the markets without delay. The Company estimates that the decision in the matter will be made and published on Thursday, June 23, 2011 at the latest.
GeoSentric Oyj
For more information, please contact: investors@gypsii.com
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