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EMGS EMGS, the market leader in electromagnetic (EM) imaging, has announced a share capital increase, in the form of a rights issue of new ordinary shares, in the amount of NOK 250 million (the 'Rights Issue'). The share capital increase has been fully underwritten by a consortium consisting of existing shareholders led by Warburg Pincus and members of management. The fundraising will strengthen the working capital position of the Company and support its long term growth.
EMGS is arranging the Rights Issue in order to give existing shareholders the opportunity to maintain their percentage interests in the Company: the share capital increase will be conducted as a rights issue with listed and tradable pre-emptive rights for registered shareholders in EMGS as at a date to be determined. The subscription price per share under the Rights Issue will be set at a 20% discount to the volume weighted average trading price of the Company's ordinary shares on the Oslo Børs during the five trading days following EMGS' 2008 second quarter announcement on August 21, 2008 (the `VWAP Period`); the Rights Issue price will in any event be no higher than the latest closing price registered in the VWAP Period.
Each underwriter has undertaken, pro rata to its commitment, to subscribe for any shares not validly subscribed by shareholders within the subscription period of the Rights Issue. Shares subscribed by underwriters in the Rights Issue will be deducted from their respective obligations under the underwriting agreement.
The following shareholders in EMGS comprise the underwriting consortium:
Shareholder Underwriting commitment Warburg Pincus Funds NOK 237.5 million Bjarte Bruheim NOK 10.0 million Terje Eidesmo NOK 2.5 million
The subscription commitments of the underwriting consortium will terminate on September 30, 2008.
ABG Sundal & Collier Norge ASA will act as the Sole Manager for the Rights Issue.
EMGS is preparing a prospectus in connection with the Rights Issue, which will be subject to approval from the Oslo Børs. Further information on the Rights Issue, including the timetable for the issue, will be published following the approval of the Oslo Børs.
Capital MS&L Steffan Williams +44 207 307 5332 +44 7767 345 563 (m) Jennifer Martin +44 207 307 5335 +44 7841 401 304 (m) James Madsen +44 207 255 5199 +44 7738 324 438 (m)
About EMGS EMGS is the market leader in electromagnetic (EM) imaging. The company launched the EM imaging industry in 2002 with the commercialisation of seabed logging, a proven exploration method that uses EM energy to help oil companies in their search for hydrocarbons. EMGS provides a full suite of services, including data planning, acquisition, imaging and interpretation. The company's integration systems enable seamless integration of EM data with seismic and other geophysical and geological information, giving explorationists a clearer and more complete understanding of the subsurface. This proprietary and patented technology has been developed over the past 10 years bringing dramatic improvement to exploration decision-making in frontier and mature provinces.
EMGS employs approximately 300 people from three main offices in Trondheim, Norway; Houston, USA; and Kuala Lumpur, Malaysia. The Company operates the world's largest EM vessel fleet and has conducted more than 350 surveys for many of the world's leading energy companies.
Please visit www.emgs.com for the latest news and in-depth information about EMGS and EM imaging technology.
For general enquiries please email findinghydrocarbons@emgs.com
