GeoSentric Oyj - Company Announcement

DIRECTED SHARE OFFERING HAS SECURED COMMITMENTS IN EXCESS OF €1 MILLION ENABLING THE COMPANY TO PARTICIPATE FULLY IN THE GEOSOLUTIONS HOLDINGS NV SHARE OFFERING

GEOSENTRIC OYJ      STOCK EXCHANGE RELEASE October 7, 2011 at 11:30





DIRECTED SHARE OFFERING HAS SECURED COMMITMENTS IN EXCESS OF €1 MILLION
ENABLING THE COMPANY TO PARTICIPATE FULLY IN THE GEOSOLUTIONS HOLDINGS NV SHARE
OFFERING 





As previously announced, the Company is currently arranging a directed share
offering (“GSOY Offering”) to its largest shareholders. The GSOY Offering is
primarily intended to allow GSOY to participate in the planned second tranche
of the share offering of GeoSolutions Holdings NV (“GHNV”), its previously
wholly owned subsidiary (now 15% owned associate company). The second tranche
of the GHNV share offering, agreed to be executed on 14 October 2011 at the
latest, shall raise €2m directed equally to the lead investor and to the
Company, each being entitled to subscribe for new GHNV shares for the amount of
€1 million. 



The Company can announce today that it has received signed investment
commitments totaling just over €1 million and intends to participate fully in
the GHNV share offering. After the Company subscribes all the shares offered to
it in the second tranche of the GHNV share offering, the Company's shareholding
in GHNV will increase to approximately 24% after the repayment of the
Convertible Bond Loan 2008-B, which repayment was approved at the Company's EGM
on September 8, 2011. The Company has received further indications of interest
to subscribe to the GSOY Offering and intends to continue accepting investment
commitments for a further short period of time up to the planned full amount of
the GSOY Offering of €1.25 million. The Company will announce the final total
as soon as the offering is closed, whereupon the Board will approve the
commitments and will issue the new shares based on the approved commitments
shortly thereafter. It is estimated that the decision to issue the new shares
will be made by the Board on October 14, 2011 at the latest. As soon as
practicably possible following the share issue, the Company will issue a formal
Prospectus and apply to get the new shares listed and eligible for trading.
This process can take several months. 



As announced before, the Company now also intends to execute a reverse share
split after the GSOY Offering has been completed in the ratio of approximately
ten to one to improve the marketability and liquidity of the Company's shares.
The decision on the reverse split will be made by an Extraordinary General
Meeting, to be called in the first convenience after closing of the GSOY
Offering. 





GEOSENTRIC OYJ



Board of Directors



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