EMGS: Board of directors approves audited financial statements and annual report for 2025
The board of directors of Electromagnetic Geoservices ASA (“EMGS” or the “Company”) has approved EMGS’ 2025 annual financial statements and annual report. The annual report is attached to this announcement.
The annual report includes a going concern disclosure stating that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. The Company wishes to specifically draw attention to this disclosure.
As further described in the annual report, following completion of the transaction completed on 28 April 2026 (the “Transaction”), EMGS no longer owns or operates the EM business and will hold no material assets other than a limited cash position. The Company’s outstanding convertible bond, EMGS03, remains with EMGS, and the Company’s interest-bearing debt materially exceeds the value of its remaining assets. The Company also has no operating business from which to generate cash flow to service its obligations.
The Company’s ability to continue as a going concern will be entirely dependent on one or more of the following: (i) identifying a new business or project opportunity, (ii) obtaining new external financing, and/or (iii) a conversion or restructuring of the outstanding indebtedness under EMGS03. No assurances can be given that any of the foregoing will be achievable. As of the date of this annual report, there is no residual value attributable to shareholders, other than to the extent that there is any option value, which is highly uncertain given the material excess of the Company’s total liabilities over its total assets following the Transaction.
The auditor has included an emphasis of matter in the auditor’s report in respect of the material uncertainty related to going concern.
Apart from this, and as reflected in the annual report, there are no material changes to the financial statements compared to the preliminary fourth quarter 2025 results published by the Company.
This information is published in accordance with the Norwegian Securities Trading Act § 5-12.
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