GEOSENTRIC OYJ STOCK EXCHANGE RELEASE July 20, 2011 at 15:30
FINANCING UPDATE, DISCUSSIONS BETWEEN MAJOR SHAREHOLDERS AND LEAD INVESTOR ARE CONTINUING
The Company has previously announced on June 8, 2011 that it had raised sufficient finance to sustain group operations to the end of June. It also announced on June 27, 2011 that it had signed an agreement with a major Chinese media company, Sina Corp, to form a joint venture in China using the Company’s currently wholly owned Chinese subsidiary, GyPSii (Shanghai) Co. Ltd (GSSH), as the vehicle. Pursuant to implementing the JV agreement, Sina Corp has provided advance funding on June 17th to GSSH of 4,000,000 RMB. This advance is sufficient to finance GSSH through to the expected date of final creation of the joint venture, which can take up to 90 days. This cash advance has extended the current cash runway for the remaining group outside of China to the end of July.
The Company has previously on July 12, 2011 informed that the lead investor and a group of the Company’s largest shareholders have reached on agreement concerning the manner of execution of the lead investor’s financing proposal (the “Proposal”) and the planned support and participation of this group of largest shareholders in this planned financing. The Company has been informed that the discussions upon final agreement and the full details of the financing proposal, introducing some possible changes to the terms of the Proposal, are still continuing and expected to be available to be announced soon. Meanwhile, the Company remains dependant on the financial support of the lead investor and this group of largest shareholders and it has been assured that this support is still secure and that the agreement between the lead investor and the group of largest shareholders will secure the group’s short-term financing needs and will provide a way forward for a long-term financing solution.
GeoSentric Oyj
For more information, please contact: investors@gypsii.com
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