GeoSentric Oyj - Company Announcement

COMPANY'S DIRECTED SHARE OFFERING HAS BEEN CLOSED AT JUST OVER €1M

GEOSENTRIC OYJ      STOCK EXCHANGE RELEASE November 10, 2011 at 16:10



COMPANY'S DIRECTED SHARE OFFERING HAS BEEN CLOSED AT JUST OVER €1M



As previously announced, the Company has arranged a directed share offering
(“GSOY Offering”) to its largest shareholders in order to participate in the
second tranche of the share offering of GeoSolutions Holdings NV (“GHNV”) its
previously wholly owned subsidiary (now 24% owned associate company) for the
total amount of €1 million. As previously announced, in October 2011, the
Company raised a total amount of €1,015,000 in the first and second tranches of
the GSOY Offering by issuing a total amount of 2,537,500,000 new shares at
€0.0004 per share. In addition the Company received a short-term convertible
loan for the amount of €227,500 (“Loan”) from one of its largest shareholders.
The Loan must, at the election of the noteholder by the end of November 2011,
be either converted into Company shares or special subscription rights on the
same terms as the GSOY Offering or may be repaid. 



The aforementioned funds enabled the Company, on 14 October 2011, to subscribe
for all the new GHNV shares offered to it for the amount of €1 million. In
addition, as agreed, it has, on November 4, 2011, repaid the €10M Convertible
Bond Loan 2008-B with accrued interest by transferring to the lead investor the
agreed number of GHNV shares. After subscribing all the shares offered to it in
the second tranche of the GHNV share offering and repaying the Convertible Bond
Loan 2008-B, the Company's shareholding in GHNV has increased to approximately
24%. 



The Company has now resolved to issue a further 28,090,000 new shares at
€0.0004 per share in a third and final tranche of the GSOY Offering to
participants thereby raising €11,236 and making the total amount raised in the
GSOY Offering €1,026,236. 



The Company estimates that the new shares issued in the GSOY Offering will be
registered in the trade register by end of November. The Company further
intends, as soon as possible, to prepare and publish a formal Prospectus and
apply to get the new shares listed and eligible for trading. This process can
take several months. 



The 2,565,590,000 shares issued in the GSOY Offering outlined above represent
73.5% of Company's outstanding shares and votes and 52.2 % of fully diluted
shares and votes. 



The total amount raised in all three tranches was €223,764 short of the
Company's targeted amount to be raised in the GSOY Offering of €1.25 million.
As the amount raised in the GSOY Offering was short of the targeted amount, the
Company is continuing to explore all the options open to it to ensure that it
has sufficient liquidity, including another possible directed rights offering,
further cost cutting measures where possible, asset sales and other possible
sources of external finance. Assuming that the Loan is repaid, the Company's
current cash resources are sufficient to finance the business into Q1 2012 and
any alternative funding options should therefore be completed by the end of Q1
2012. 



As announced earlier, the Company will call an Extraordinary General Meeting to
be held by the end of December 2011, to decide on proposed reverse split in the
ratio of approximately ten to one to improve the marketability and liquidity of
the Company's shares. The call will be released as soon as the new shares
issued in the GSOY Offering have been registered in the Trade Register. 





GEOSENTRIC OYJ



Board of Directors



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NASDAQ OMX Helsinki

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