HOUSTON, March 20, 2020 /PRNewswire/ -- ION
Geophysical Corporation (NYSE: IO) today announced the Company
entered into an agreement to sell its 49% equity stake in INOVA
Geophysical Equipment Limited (INOVA) for $12 million. INOVA is a land seismic
equipment joint venture with BGP Inc., the world's largest land
seismic service provider, who owns the remaining 51%. INOVA
is a leading provider of land geophysical technology, including
acquisition systems, source products and digital sensors. In
2014, ION wrote down its investment in INOVA to zero. The
parties anticipate closing the deal in the second half of the year,
subject to regulatory approvals and other closing conditions.
"This divestment is aligned with ION's strategy to focus on
higher potential return offerings offshore that value our leading
technology and experience while monetizing non-core assets," said
Chris Usher, ION's President and
Chief Executive Officer. "I am pleased we reached a mutually
beneficial agreement that supports our customers while delivering
value to our shareholders. The proceeds will support our
entry into the 3D new acquisition market and development of our
Marlin™ SmartPort business while further bolstering our
liquidity."
About ION
ION develops and leverages innovative technologies, creating
value through data capture, analysis and optimization to enhance
critical decision-making, enabling superior returns. For more
information, visit iongeo.com.
Contacts
ION (Investor relations)
Executive Vice President and
Chief Financial Officer
Mike Morrison, +1 281.552.3011
mike.morrison@iongeo.com
ION (Media relations)
Vice President,
Communications
Rachel White, +1 281.781.1168
rachel.white@iongeo.com
The information herein contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements may include information and other
statements that are not of historical fact. Actual results may vary
materially from those described in these forward-looking
statements. All forward-looking statements reflect numerous
assumptions and involve a number of risks and uncertainties. These
risks and uncertainties include the risks associated with the
timing and development of ION Geophysical Corporation's products
and services; pricing pressure; decreased demand; changes in oil
prices; and political, execution, regulatory, and currency risks.
These risks and uncertainties also include risks associated with
the WesternGeco litigation and other related proceedings. We cannot
predict the outcome of this litigation or the related
proceedings. For additional information regarding these
various risks and uncertainties, including the WesternGeco
litigation, see our Form 10-K for the year ended December 31, 2019, filed on February 6, 2020. Additional risk factors, which
could affect actual results, are disclosed by the Company in its
filings with the Securities and Exchange Commission ("SEC"),
including its Form 10-K, Form 10-Qs and Form 8-Ks filed during the
year. The Company expressly disclaims any obligation to revise or
update any forward-looking statements.
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SOURCE ION Geophysical Corporation