GeoSentric Oyj - Company Announcement

FUNDING UPDATE, GSOY TO OPEN FUNDING ROUND OF UP TO €1,55M TO FINANCE OPERATIONS THROUGH 2013, REPAYMENT OF LOAN AND ADDITIONAL INVESTMENT IN GHNV

GEOSENTRIC OYJ      STOCK EXCHANGE RELEASE 06 NOVEMBER 2012 at 15:30





FUNDING UPDATE, GSOY TO OPEN FUNDING ROUND OF UP TO €1,55M TO FINANCE
OPERATIONS THROUGH 2013, REPAYMENT OF LOAN AND ADDITIONAL INVESTMENT IN GHNV 



As previously reported on June 5, 2012, the Annual General Meeting of the
Company confirmed a €350,000 secured funding (“Loan”) proposal from an
independent advisory business. This funding, as presented at the meeting, was
expected to finance the operations of the Company into Q1 2013 and was secured
by a pledge on the shares of GeoSolutions Holding N.V. (“GHNV”) held by the
Company. The Company now reports that when the full amount of the Loan has been
received, it will finance the operations of the Company into Q1/2013 as
originally expected. The Loan falls due on the maturity date of 30 April 2013
and requires a maximum repayment in the amount of €700,000 on that date. 



As the Company's approximately 24% investment in GHNV, in which the Company
holds its investment in the “GyPSii” brand of applications, has not yet started
to generate revenues back to the Company, the Company must finance the
repayment of the Loan by additional external funding. The Company also reports
that it has recently received a cash call from GHNV for additional funding
needed to finance GHNV's operations for 2013. The Company's pro-rata share of
the GHNV cash call is €540,348, which is needed to protect the Company's
holding in GHNV from further dilution. A commitment for this funding from the
Company to GHNV is due no later than 30 November 2012, with funds due no later
than 1 January 2013. 



In addition to the €700,000 repayment of the Loan, and the requested €540,348
GHNV cash call, the Company will require cash for its own operations in 2013.
The estimated operational budget for 2013 is €350,000. Given the cash that is
expected to be in the bank at the end of December, the total amount needed to
fund all the cash needs of the Company through 2013 is €1,550,000. 



The Company plans to reach out to its current largest shareholders and
investors and other potential investors in the near future to discuss potential
funding mechanisms. In the meantime, the Board continues to retain and pursue,
where appropriate, all realistic strategic options open to it in order to raise
the necessary funding, including another directed share offering, a secured
loan, an asset sale and other possible sources of external finance. 



As previously announced, the reverse split of the Company shares approved by
the Annual General Meeting on June 5, 2012, and the listing of the
2,565,590,000 new shares issued in the GSOY Offering in October and November
2011 will be delayed until the now announced new funding is completed. 



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 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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