GEOSENTRIC OYJ STOCK EXCHANGE RELEASE November 14, 2012 at 10:30
FUNDING UPDATE, COMPANY TO SEEK SECURED LOAN FROM ITS LARGEST SHAREHOLDERS TO SECURE ITS FUNDING NEEDS THROUGH 2013
As previously announced on November 8, 2012, the Company has received the full amount (€350,000) of its current secured loan and has sufficient cash for operations into Q1 2013. As further announced on November 6, 2012 the Company is now exploring all options available to it to ensure that it has sufficient liquidity to secure its operations through 2013 and possibly beyond, and its other funding needs including repayment of the current secured loan note and raising required funds to participate in the upcoming funding round of GeoSolutions Holding N.V. (”GHNV”).
Because the Company’s current cash resources are only sufficient to finance the business into Q1 2013, any alternative funding options should therefore be concluded by the end of December 2012. To address this issue, the Board has now resolved to issue a new secured interest-bearing loan note and accordingly the Board will write to its known major shareholders seeking to raise, through this instrument, a minimum of €1,000,000, and potentially up to €1,550,000, depending on investor appetite. The proposed note would use the currently approximately 24% equity investment that the Company holds in GHNV as security. As announced on November 6, 2012 the cash from the proposed loan note would be used to repay the current secured loan, to fund the operations of the Company through 2013, and to potentially participate in the recent GHNV cash call. The proposed schedule for this offer requires the subscribed Loan Notes be paid to the bank account of the Company on or before 21 December 2012.
Meanwhile, the Board continues to retain and pursue, where appropriate, all realistic strategic options open to it in order to raise the necessary finance including another directed share offering, further cost cutting measures where possible, asset sales and other possible sources of external finance. If the Company does not succeed in raising the required additional funding, it may lose all or part of its holding in GHNV either as a result of realization of the pledge on the current secured loan or further dilution from the other shareholders’ investment in GHNV based on the cash call.
GEOSENTRIC OYJ
Board of Directors
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