GeoSentric Oyj - Company Announcement

FINANCING UPDATE, NEGOTIATIONS WITH MAJOR HOLDERS CONTINUE, SHORT-TERM BRIDGE FINANCING BEING PREPARED TO MAINTAIN SOLVENCY

GEOSENTRIC OYJ      STOCK EXCHANGE RELEASE June 1, 2011 at 17:20





FINANCING UPDATE, NEGOTIATIONS WITH MAJOR HOLDERS CONTINUE, SHORT-TERM BRIDGE
FINANCING BEING PREPARED TO MAINTAIN SOLVENCY 



As previously announced on May 13, 2011, as a result of receiving indications
of interest to invest in the business by some of the largest shareholders, the
Company has engaged in discussion about possible alternative or additional
funding proposals with the lead investor and a number of existing major
shareholders within the time limits allowed by the funds available. The
announced reallocation of previously received short-term financing from the
lead investor enabled GeoSentric, its wholly owned subsidiary, GeoSolutions
Holdings NV (“GHNV”) and its subsidiaries to have sufficient liquidity through
to the end of May 2011. The lead investor also agreed to amend the
implementation timetable of their previously published financing proposal
(“Proposal”) to allow the additional time required to have the discussions with
these major shareholders, with the target to complete by end of June. 



It is now apparent that the discussions with the lead investor and some of the
largest shareholders will take some more time to complete. As the Company does
not have sufficient funds to continue its operations through that period, the
Company made a request last week to the lead investor and the largest
shareholders to provide additional bridge funding of up to 750k€ in the form of
an unsecured loan note. The largest shareholders have declined to participate
in this bridge funding. As a result, the lead investor has agreed to be the
sole source of additional finance via a further extension of the existing
preferred convertible loan notes issued by GHNV. The final details of this
finance will be announced to the markets immediately after agreement in the
next few days. Without receiving this additional financing the Company would be
insolvent. 



In the meanwhile the Company continues discussions with the lead investor and
the group of some of the largest shareholders. The parties have jointly agreed
to complete the process by the end of June. The lead investor has also further
confirmed that they are still in support of their original Proposal should
there be no agreement reached in the discussions with the group of some of the
largest shareholders. 





GeoSentric Oyj





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



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