Reference is made to the stock exchange notice of 14 February 2014, where it was announced that EMGS had subscribed for 5,000,000 shares in North Energy ASA (North) in the private placement resolved by North's extraordinary general meeting held 13 February 2014 (the Private Placement). As stated in said notice, EMGS will, when the new capital is registered and these shares are issued, hold 5,000,000 shares in North, equaling 4.46% of the shares and votes in North.
In addition to the Private Placement, the extraordinary general meeting held 13 February 2014 in North resolved the issuance of a NOK 75,000,000 convertible loan to EMGS as lender. As previously announced, the convertible loan has a strike price of NOK 4.15, coupon of 6% and a maturity of 6 months. The right to convert the convertible loan to shares in North can be exercised up to three times in the conversion period from and including the date falling four months after the settlement date to, but not including, the date falling six months after the settlement date. The settlement date is 19 February 2014.
With a conversion price at NOK 4.15 and convertible outstanding loan amount of NOK 75,000,000, if fully converted EMGS would be entitled to 18,072,289 shares in North, which equals 16.1% of the 112,063,448 shares and votes in North after the Private Placement.
In the event of issuance of new shares or subscription rights in North, EMGS will pursuant to the terms of the convertible loan have shareholder rights including preferential subscription rights pursuant to §§ 10-4 and 11-4 of the Public Limited Liability Companies Act, which may be applied proportional to an equity interest of NOK 18,072,289, or such adjusted equity interest that follows as a consequence of adjusting the conversion price.
EMGS will, upon conversion, follow the regulation for notifying ownership by issuing stock exchange notices according to applicable regulations.
Contacts
Charlotte Knudsen, EMGS head of investor relations, +47 97 56 19 59
About EMGS
EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. EMGS supports each stage in the workflow, from survey design and data acquisition to processing and interpretation. The company's services enable the integration of EM data with seismic and other geophysical and geological information to give explorationists a clearer and more complete understanding of the subsurface. This improves exploration efficiency and reduces risks and the finding costs per barrel.
EMGS operates on a worldwide basis with main offices in Trondheim and Oslo, Norway; Houston, USA; and Kuala Lumpur, Malaysia.
For more information, visit www.emgs.com