Axxis Geo Solutions contemplates financial restructuring, equity offering

LYSAKER: Axxis Geo Solutions ASA refers to the Company’s press release and latest quarterly report as of November 30, 2020, in which the Company states that it will have to address its debt situation and improve its balance sheet through a capital restructuring.

Axxis Geo Solutions has over some time been in active dialogue with its current stakeholders and other strategic and financial investors.

As a result of this process, a group of financial investors has proposed that the company raises USD 12-15 million in new equity at a share price of NOK 0.1.

The group of financial investors has pre-committed to participate with USD 12 million in such contemplated equity issue.

The participation in the contemplated equity issue is conditional upon:

• All of the Company’s creditors (except certain exempted creditors related to tax and as described below)accepting a final settlement of their claim equal to 15% of the outstanding amount, if receiving settlement in cash, alternatively accepting a conversion of their claim into shares at a share price of NOK 0.5. Trade creditors with claims of USD 20,000 or less will be settled in full.

• TGS accepting an extension of the maturity date for their promissory note to at least 30 June 2022.

• The debt to Eksportkreditt either being paid down by proceeds from selling the vessel Naiad, or the debt following the vessel.

• An extraordinary general meeting of Axxis resolving to approve conversion of debt and the equity issue.

Axxis Geo Solutions has entered into an exclusive agreement with the financial group of investors with the aim of entering into a voluntary solution with the Company’s creditors as soon as possible.

If such a voluntary solution is not accepted by all relevant creditors, the Company intends to file for a court protected reconstruction pursuant to Norwegian law.

The Company has noted recent articles in the media relating to a court hearing addressing a petition for bankruptcy. If a voluntary solution is not found before the date on which such court hearing is scheduled to take place, the Company intends to file for court protected reconstruction before such court hearing takes place.

Any such petition is therefore irrelevant as there is either a voluntary solution in line with the above in place, or the Company will have filed for a court protected reconstruction as referenced above. The Company has engaged ABG Sundal Collier and SpareBank 1 Markets as financial advisers and Advokatfirmaet Schjødt as its legal adviser.

Axxis Geo Solutions (Axxis) is a pure-play ocean bottom node seismic company uniquely positioned to pursue both contract and multi-client seismic.

Axxis specializes on delivering tailored seismic solutions and flexible project management and execution to oil and gas companies world-wide. Its operations are based on a scalable asset-light setup through chartering of vessels and nodes to complete seismic surveys. Axxis is listed on Oslo Axess and traded under the ticker Axxis. www.axxisgeo.com

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