EMGS - Update on financing position Electromag
Post# of 301275
Electromagnetic Geoservices ASA ("EMGS" or the "Company") refers to the description of the Company's financing needs in the Q4 report. In order to improve the free cash position and ensure compliance with the minimum liquidity covenant in the Companys bond loan, the Company has entered into an agreement with DNB Bank ASA whereby the existing (i) USD 10 million revolving credit and (ii) the USD 10 million Guarantee facility will be made fully available to the Company based on security in the form of guarantees from Siem Industries Inc. and Perestroika AS who will receive market level guarantee commission. The Company intends to carry out a preferential rights issue with gross proceeds equal to a minimum of the NOK equivalent of USD 15 million. EMGS' three largest shareholders have indicated willingness to underwrite this rights issue. Further information will be disclosed when available. The Company expects to send a calling notice for the General Meeting within the next few weeks. Contact Hege Veiseth, EMGS Chief Financial Officer, +47 992 16 743 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 exploration experts 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 offices in Trondheim, Oslo, Houston, Villahermosa, Rio de Janeiro and Kuala Lumpur. For more information, visit www.emgs.com This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.