Skip to main content

EMGS: Going Concern & Capital Structure

Written by Customer Service on . Posted in Public Companies.

Reference is made to the stock exchange announcement published by Electromagnetic Geoservices ASA’s (the “Company” or “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.

Contact
Anders Eimstad, Chief Financial Officer, +47 948 25 836
This information is published in accordance with the Norwegian Securities Trading Act § 5-12.

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 in other offshore construction and exploration activity.

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.