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Ålesund, 30 June 2021:
As already reported, 3 of the 4 vessels under GEOS’ ownership are now working with good utilization in the spot market in the North Sea. However, the past year’s down-turn and developments in the offshore service market, has resulted in a significant strain of the Company’s cash flow. The Board of Directors together with Golden Energy Offshore Management AS are therefore working to find a solution to the liquidity challenges. The Company is pleased to announce that an agreement is now signed related to the financing of Energy Empress and Energy Duchess.
The Energy Empress and Energy Duchess are purchased under separate hire-purchase bare-boat agreements. In 2020, the Company reached an agreement with the seller/lessor – ROC – for the postponement of a part of the 1st anniversary lease payments (as announced on 19 June 2020). A total amount of USD 8 609 720 was therefore due and payable in May 2021 to ROC.
The Company and ROC has now reached an agreement for a one year extension of the full amounts payable in May 2021, the agreement also includes postponement of payment of accrued unpaid hire related to the period from July 2020 to April 2021. The accrued unpaid hire and the amounts otherwise payable in May 2021 will become payable together with the balance purchase price in May 2022. The amounts deferred by the agreement now signed is subject to interest at a rate of 10% p.a.
The agreement signed today is effective immediately and the Board of Directors will continue the dialogue with the other creditors to maintain the going concern of the Company. The agreement with ROC represent a major milestone towards an overall solution and confirms the largest creditor’s support towards the Company.
For further information contact:
Per Ivar Fagervoll
pif@geoff.no
mobile + 47 974 28 884
Important Notice
The contents of this announcement have been prepared by, and are the sole responsibility of, the Company. The Company's financial advisors are acting exclusively for the Company and no one else, and will not be responsible to anyone other than the Company for providing the protections afforded to its respective clients, or for advice in relation to the contents of this announcement or any of the matters referred to herein.
The distribution of this announcement and other information in connection herewith may be restricted by law in certain jurisdictions. The Company assumes no responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about, and to observe, any such restrictions. This announcement may not be used for, or in connection with, and does not constitute, any offer of securities for sale in the United States or in any other jurisdiction.
This announcement does not constitute any offer and the Company will not be making any offer in any jurisdiction or in any circumstances in which such offer or solicitation would be unlawful. This announcement is not for distribution, directly or indirectly in or into any jurisdiction in which it is unlawful to make any offer or solicitation to such person or where prior registration or approval is required for that purpose. No steps have been taken or will be taken relating to the information in this announcement in any jurisdiction in which such steps would be required. Neither the publication and/or delivery of this announcement shall under any circumstances imply that there has been no change in the affairs of the Company or that the information contained herein is correct as of any date subsequent to the earlier of the date hereof and any earlier specified date with respect to such information.
This announcement is not for publication or distribution, directly or indirectly, in the United States (including its territories and possessions, any state of the United States and the District of Columbia). This announcement does not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The shares to be issued in the Possible Placement have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to, or for the account of, U.S. persons (as such term is defined in Regulation S under the US Securities Act), except pursuant to an effective registration statement under, or an exemption from the registration requirements of, the US Securities Act. All offers and sales outside the United States will be made in reliance on Regulation S under the US Securities Act. There will be no public offer of securities in the United States.
This announcement does not constitute an offering circular or prospectus in connection with an offering of securities of the Company. Investors must neither accept any offer for, nor acquire, any securities to which this document refers, unless they do so on the basis of the information contained in investor material made available by the Company only to qualified persons in certain jurisdictions where an offer may be made (if an offer is made). This announcement does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for, any securities and cannot be relied on for any investment contract or decision.
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.