EMGS: Update on cash position
October 07 2021 - 1:30AM
EMGS: Update on cash position
Banking regulators in Mexico recently revoked the banking
license of Accendo Banco S.A. (“Accendo Bank” or the “Bank”), and
consequently, in accordance with Mexican financial regulation
applicable to Accendo Bank, initiated a liquidation process of the
Bank.
Electromagnetic Geoservices ASA (“EMGS” or the “Company”) had
funds deposited with the Bank. As a result of the initiation of the
liquidation process, these funds are no longer immediately
available to the Company. Based on the information currently
available, EMGS expects to recover at least part of the amount in
the form of dividends from the liquidation process. It is, however,
not possible at this point in time to assess neither the recovery
amount nor when such dividend, if any, will be paid to the
Company.
Accendo Bank is not EMGS’ main bank in Mexico, but was used to
facilitate certain day-to-day intra group transactions. At the
opening of the liquidation process, EMGS had deposits with the Bank
totalling approx. USD 2.1 million.
Based on the highly limited information available to the
Company, and the uncertainty pertaining to the amount and timing of
liquidation dividends, if any, EMGS will make an impairment of
approx. USD 2 million. The impairment equals the full amount
deposited with Accendo Bank, less a relative limited payment from
the Mexican Bank Savings Protection Fund, which the Company
currently expects to receive within the relatively near future.
The unaudited free cash position of EMGS at the end of September
2021, excluding the cash held with Accendo Bank, was approx. USD
14.8 million.
Management and the board of directors of EMGS are working
closely with the Company’s advisors, including Mexican legal
counsel, to safeguard the Company’s interests.
Additional details and updates will be published in due course
and when available.
Contact Anders Eimstad, CFO, +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 EMGS believes that the technology can also be used
to estimate the mineral content of such deposits. The Company is
undertaking early-stage initiatives to position itself in this
future market.
Electromagnetic Geoservi... (LSE:0J5B)
Historical Stock Chart
From Jun 2024 to Jul 2024
Electromagnetic Geoservi... (LSE:0J5B)
Historical Stock Chart
From Jul 2023 to Jul 2024