EMGS beefs up stake in North Energy

Referring to the decision of an extraordinary general meeting to issue a convertible loan of NOK 75 million to Electromagnetic Geos ASA (EMGS) on 13 February 2014, North Energy has today informed that a request has been received by North Energy from EMGS to convert NOK 28.4 million of the convertible loan into North Energy shares.

The remaining loan balance of NOK 46.6 million falls due on 2 September 2014.  Shares issued as a result of the conversion are priced at NOK 4.1451 per share. North Energy will accordingly issue 6,851,463 new shares to EMGS. Following the conversion, EMGS will own 11,851.463 shares in North Energy, corresponding to 9.96 per cent.

“North Energy is pleased that EMGS has chosen to convert the loan into shares. The conversion further strengthens the financial position of North Energy. We welcome EMGS as larger shareholder in the company and look forward to continue the good cooperation” says CEO Erik Karlstrøm.

“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.