Reference is made to Electromagnetic Geoservices ASA’s (“EMGS” or the “Company”) financial report for the third quarter of 2019, wherein the Company described delays in the approval and payment of invoices under an on-going acquisition contract in the Americas. Further details regarding the situation, and the potential consequences thereof in the event the Company is not able to resolve it, is set out in the 2019 third quarter financial report.
The delays in payment and approval of these invoices continues. However, the Company is experiencing progress both with regards to payment of approved invoices and approval of invoices ready for final submittal to the customer.
As of today and after 30 September 2019, the Company has received cash payments of approximately MUSD 8.6 under the contract, including cash advances received under a factoring facility related to the contract.
Based on current projections, and the information available to the Company today, EMGS expects to have a free cash position at 31 December 2019 in excess of MUSD 10. This projection assumes, amongst other things*, no further cash payments from the end customer before 31 December 2019.
Additional details will be provided in due course.
Hege Veiseth, CFO, +47 99 21 67 43