Reference is made to the stock exchange announcement published by Electromagnetic Geoservices (EMGS) on 5 November 2025 and to the Company's interim financial report for the third quarter of 2025. As announced, EMGS expects to require additional funding within the near term to sustain operations, and the Company is evaluating several alternatives to preserve value for its stakeholders, including restructuring options.
The Company has retained an external advisory firm to support in the ongoing evaluation of all available options to preserve and maximise value for its shareholders and other stakeholders.
The Company has interest-bearing debt of USD 19.5 million outstanding under the convertible bond issue Elec ASA 18/25 FRN USD FLOOR STEP C CONV ("EMGS03"). Based on current activity levels and the Company's outlook, the existing capital structure is not considered sustainable.
One of the potential options the Company is therefore evaluating, is a partial or complete conversion of the convertible bonds under EMGS03 into new equity in the Company. It is expected that any such conversion, if implemented, would be carried out at or below the current market price of the Company's shares. A full conversion at or below the current trading price for the Company's shares would result in significant dilution for existing shareholders.
The Company continues to assess all available strategic and financial alternatives. Should EMGS elect to pursue a full conversion of the EMGS03 Bonds, there can be no assurance that the Company will be able to obtain the requisite consent from a sufficient majority of bondholders to pass the bondholders' resolution(s) required to effect such conversion. Furthermore, even if a conversion is successfully completed, there can be no assurance that this alone will be sufficient to establish a financially sustainable long-term solution for the Company.
Further updates will be provided as appropriate.
Source: EMGS
