With reference to the announcement of the strategic agreement between North Energy ASA and Electromagnetic Geoservices ASA (EMGS) on 21 January 2014, EMGS has now settled the NOK 75 million convertible bond loan to North Energy.
EMGS has converted NOK 28.4 million of the loan into 6,851,463 shares in North Energy, at a strike price of NOK 4.1451. In addition, the Company, receives interest of NOK 0.9 million.
After the transaction, EMGS holds 11,850,000 shares in North Energy, representing 9.96% of all outstanding shares.
“North Energy has established its strategy on the use of EM technology as an integrated part of the company’s exploration workflow. We are excited to become a substantial shareholder, as well as exploring mutually beneficial opportunities with North Energy going forward,” says CEO of EMGS, Roar Bekker.
The remaining of the convertible bond loan, NOK 46.6 million plus interest of NOK 1.5 million will be settled in cash on the settlement date 2 September 2014.
Press Release, August 20, 2014