EMGS to launch its third partial bond buy-back

12 Dec 2022 18:42 CET

The board of directors of Electromagnetic Geoservices ASA ("EMGS" or the
"Company") has resolved to initiate a third voluntary, partial buy-back of bonds
under the Company's outstanding convertible bond issue Elec ASA 18/25 FRN USD
FLOOR STEP C CONV ("EMGS03").

The third voluntary bond buy-back follows; (i) the first voluntary bond buy-
back, completed by the Company in July 2021, where the Company bought back and
subsequently discharged bonds with a total nominal value of approx. USD
4,000,000 (equal to 12.3 per cent of the Outstanding Bonds (as defined in the
bond agreement) at the date of launch of the first offer) and; (ii) the second
voluntary bond buy-back, completed by the Company in December 2021, where the
Company bought back and subsequently discharged bonds with a total nominal value
of approx. USD 4,000,000 (equal to 14.0 per cent of the Outstanding Bonds at the
date of launch of the second offer).

Following completion of the first and the second voluntary bond buy-backs and as
of the date of this release, a total of USD 24,501,100 remains outstanding under
EMGS03.

Under the third voluntary bond buy-back, the Company intends to offer to buy-
back Outstanding Bonds with an aggregate principal amount of up to USD
5,000,000 (subject to upsizing). EMGS will offer to buy back the bonds at 86.5
per cent of par value (a discount to par value of 13.5 per cent).

Based on preliminary discussions, only one of the largest bondholders has
indicated its interest to participate.

The Company expects to formally launch and complete the offer within 31 December
2022.


Contact
Anders Eimstad, CFO, +47 948 25 836

About EMGS
EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM)
technology to support oil and gas companies in their search for offshore
hydrocarbons. EMGS supports each stage in the workflow, from survey design and
data acquisition to processing and interpretation. The Company's services enable
the integration of EM data with seismic and other geophysical and geological
information to give explorationists a clearer and more complete understanding of
the subsurface. This improves exploration efficiency and reduces risks and the
finding costs per barrel. CSEM technology can also be used to detect the
presence of marine mineral deposits (primarily Seabed Massive Sulphides) and
EMGS believes that the technology can also be used to estimate the mineral
content of such deposits. The Company is undertaking early-stage initiatives to
position itself in this future market.

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

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