GeoSentric Oyj - Company Announcement

FINANCING UPDATE, EXTENSION TO FINANCING ROUND AND ISSUE OF SPECIAL RIGHTS

GEOSENTRIC OYJ STOCK EXCHANGE RELEASE January 20, 2011 at 13:30

FINANCING UPDATE, EXTENSION TO FINANCING ROUND AND ISSUE OF SPECIAL RIGHTS

As previously announced, GeoSentric Oyj entered into financing agreements with
its lead investor on June 30, 2010 enabling the Company to receive financing up
to the aggregate amount of 6M€. The terms of the financing were approved by the
Annual General Meeting of the Company held on June 30, 2010. The maximum amount
of financing was raised in three tranches during the year 2010. 

The Company further announced in its Q3 2010 interim report released on
November 18, 2010 that its working capital is not sufficient for the next 12
months without raising additional external financing. The Company has now
negotiated with its lead investor to extend the current financing structure
with additional financing of a maximum aggregate amount of 1.8M€ for the
primary purpose of financing and supporting its GyPSii operations in China. The
additional financing will be raised in two tranches through the Company's
wholly owned Dutch subsidiary GeoSolutions Holdings N.V. on the same terms as
agreed and approved by the Annual General Meeting held on June 30, 2010, except
that a placement fee will not be payable in respect of the additional
financing. The Company has already before placed the shares and assets of the
Company and GeoSolutions Holdings N.V. and its subsidiaries as a first ranking
security to the financing, which security will cover also this additional
financing. 

In connection with the additional financing the Board of Directors of the
Company has also, by virtue of the authorization granted by the Annual General
Meeting, decided to issue at maximum 144,000,000 special rights to the lead
investor, entitling them alternatively to convert their loan notes in
GeoSolutions Holdings N.V. directly into the shares of GeoSentric, as agreed in
the loan terms for the original 6M€ financing in June 2010. 

The Company has now raised the first tranche of 800,000 € of this additional
new financing. The second tranche of at maximum 1M€ will be raised by the
Company by the end of January 2011 subject to the fulfillment of certain terms
and conditions. This financing will secure Company's operations through the Q1
2011 while the Company is working on securing a long-term financing solution in
close co-operation with its key investors and shareholders. Therefore the
Company requires, after raising the above-mentioned second tranche, further
ongoing financial support from its key investors and shareholders in order to
secure its long-term financing requirements. It remains confident that
sufficient further financing will be satisfactorily secured. 



GeoSentric Oyj



For more information, please contact: investors@gypsii.com

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