GeoSentric Oyj - Company Announcement

FUNDING UPDATE, COMMITMENT FOR ADDITIONAL LOAN RECEIVED TO PARTICIPATE IN GHNV FUNDING, ADDITIONAL FUNDING NEEDED TO OTHER FUNDING NEEDS

GEOSENTRIC OYJ        STOCK EXCHANGE RELEASE December 28, 2012 at 13:00





FUNDING UPDATE, COMMITMENT FOR ADDITIONAL SECURED LOAN NOTE RECEIVED TO
PARTICIPATE IN GHNV EQUITY FUNDING, ADDITIONAL FUNDING NEEDED TO SECURE OTHER
FUNDING NEEDS 





As previously announced on December 4, 2012, the Company had not by then
received any investment commitments for Company's new secured loan note and
would continue to hold the offering open until December 21, 2012 and contact
the known major shareholders and request urgent feedback from them to indicate
if there are other terms or instruments that may be more acceptable or
attractive to investors to enable the Company to secure the required funding. 



The Company now reports that it has not received any alternative funding
proposals or commitments for the minimum amount of €1,000,000 requested from
its known major shareholders by the deadline of the close of offering of 21
December 2012.  However, an independent investment company has committed to
provide an additional loan of approximately €360,000 (“Additional Loan”), on
terms and conditions similar to the existing secured loan note (“Loan”), which
enables the Company to participate in GeoSolutions Holdings N.V.'s (“GHNV”)
equity funding round to its full pro-rata share of approximately 24% as GHNV
has recently reduced its cash call amount so that the Company's pro-rata share
of the cash call has decreased from earlier approximately €540,000 to
approximately €360,000. This, however, does not have material impact on
Company's previously announced overall funding needs for 2013. As the
Additional Loan may be used only for the equity investment in GHNV the Company
will need to raise other additional funding in early Q1 2013 to secure its
short-term working capital needs. 



The Additional Loan is issued on terms equal to those of the Loan, as
applicable, and secured by the new GHNV shares to be issued against the
Company's full participation in GHNV's equity funding round. The Additional
Loan matures at the same time with the Loan on April 30, 2013 and is subject to
a maximum redemption premium of 38.44%. The Company is entitled, in its sole
discretion, to repay the Additional Loan by transferring the newly issued GHNV
shares paid with the funds from the Additional Loan to the creditor instead of
cash payment. In this case, the Company's holding in GHNV would reduce to
approximately 6% level assuming the Loan was repaid and the current GHNV shares
securing the Loan were retained by the Company. 



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 and Additional Loan or repayment of the Additional
Loan by transferring the new GHNV shares subscribed with the funds from the
Additional Loan to the creditor. 





GEOSENTRIC OYJ



Board of Directors



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