Geosentric seeks liquidation

GeoSentric (OMXH: GEO1V) said that its negotiations to attain some financing have failed as a major shareholder has refused to accept the matter. Therefore an extraordinary general meeting to seek liquidation will be needed. The company has been basically a carcase with no sales and sky-high debt burden for years. Its stock exchange notices look about as professional as many of the blog posts over here.

The stock has been rooted at the lowest possible level of 0.01 Euros for months, with very few sales and a massive iceberg on that level. Only real activity in the last few years seems to have been the printing of new shares; there are nearly a billion of those. This has made many investors to ponder how come stock exchange authorities haven’t made any demands. The company has always managed to gain an extraordinary permit to report later even as the application comes just as its filings were due.

The Twig business, which continues the phone making legacy of Benefon, was divested to management for a price of one Euro last year. GeoSentric meantime has tried to venture into social media with China-focused GyPSii, which has so far managed to attract very little traffic. GeoSentric has a minority stake in GeoSolutions Holding NV, under which GyPSii is being operated.

Investors will be left with nothing. GeoSentric has said before, in a very confusing manner as usual, that Schroders has preferential rights to the available funds in the event of liquidation. Perhaps the most famous shareholder is True Finns leader, Timo Soini who had 400 shares in the company going into presidential elections few months ago.

***UPDATE*** The company said it has received a new proposal that does not contain unaccebtable conditions. It is therefore cancelling the EGM and applying for continuation of trading in NASDAQ OMX Helsinki at latest when financing has been secured. The most startling detail from its annual report published today on April 30th is that the company with net sales of 49 000 Euros and basically no business to handle, paid millions of Euros in management wages and benefits.