Electromagnetic Geoservices signs term sheet to sell business

The decision follows a several-month strategic review that EMGS described as, “the best available alternative to safeguard the interests of the company's stakeholders, including employees, customers and creditors.”

Other alternatives, such as a full restructuring or an orderly wind-down, were not considered viable by the company given its current financial position.

The buyer will immediately begin legal, operational, and financial due diligence on the business operations. Completion of the transaction is subject to several conditions, including obtaining necessary consents and waivers from bondholders, the company noted.

Due to what the company called the, “highly time-sensitive nature of the transaction and the need to ensure continuity of the EM business operations,” the deal is not expected by EMGS to be subject to a shareholder vote.

No guarantees have been given regarding the signing of a binding agreement or the final completion of the sale.