GeoSentric Oyj - Company Announcement

FINANCING UPDATE, SECOND TRANCHE OF ADDITIONAL FINANCING RECEIVED, FURTHER FINANCING REQUIRED TO SECURE SUFFICIENT LIQUIDITY AFTER Q1

GEOSENTRIC OYJ        STOCK EXCHANGE RELEASE February 1, 2011 at 11.30

FINANCING UPDATE, SECOND TRANCHE OF ADDITIONAL FINANCING RECEIVED, FURTHER
FINANCING REQUIRED TO SECURE SUFFICIENT LIQUIDITY AFTER Q1 

The Company announced on January 20, 2011 an agreement for further additional
financing of up to 1.8M€ of which 800,000€ were raised immediately. The Company
has now also received the second tranche of 1.0M€ of the agreed additional
financing. As a result of receiving the full 1.8M€ of additional financing the
Company has also allocated the issued 144,000,000 special rights to the lead
investor as informed in the stock exchange release on January 20, 2011. 

As the Company further announced in its Q3 2010 interim report released on
November 18, 2010, its working capital is not sufficient for the next 12 months
without raising additional external financing. The Company estimates that the
now received additional 1.8M€ financing is, under the current business plan,
sufficient to finance its operations through the Q1 2011. Therefore, and as
informed in the stock exchange release on January 20, 2011, the Company needs
to strongly rely on ongoing support from its key investors and shareholders to
secure its financing requirements. 

The Company does not currently have any committed or secured financing for its
operations after Q1 2011 and it is now working intensively with its lead
investor and other key investors and shareholders to secure a long-term
financing solution. The Company estimates that retaining sufficient liquidity
would require a minimum of 5.2M€ of additional financing received in 2011 in
addition to the 1.8M€ already received. As a part of a long-term financing
solution the Company is also planning to offer all its shareholders an
opportunity to participate the financing on equal terms to those to be agreed
with and offered to the investors. 

1.2.2011

GeoSentric Oyj



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