Norway-based Electromagnetic Geoservices (EMGS) has announced that its existing capital structure is no longer considered sustainable.
Following a previous disclosure on November 5, 2025, the company stated in a recent stock exchange disclosure that it requires additional funding in the near term to sustain its offshore survey operations.
The company currently has $19.5 million in interest-bearing debt outstanding under its convertible bond issue, EMGS03.
To address this, EMGS has retained an external advisory firm to evaluate strategic and financial alternatives intended to preserve value for stakeholders.
One primary option under consideration is the partial or complete conversion of the EMGS03 bonds into new equity.
The company noted that any such conversion would likely be executed at or below the current market price, which would result in significant dilution for existing shareholders.
EMGS cautioned that there is no assurance that the requisite majority of bondholders will consent to a full conversion.
Furthermore, the company stated that a successful conversion alone may not be sufficient to establish a financially sustainable long-term solution.
As of the third quarter of 2025, the company reported significantly reduced vessel activity, having redelivered the Atlantic Guardian to its owners.
EMGS said it continues to use its proprietary technology to support oil and gas companies in subsurface mapping, though it currently lacks vessels under charter to generate new acquisition revenue.
