Geosim financing

24 Sep 2007 12:49

Brainspark PLC24 September 2007 For immediate release 24 September 2007 Brainspark plc ("Brainspark" or the "Company") Geosim Systems Limited ("Geosim") enters into a new $3M round of financing agreement. Further to the announcement of 2 May 2007, Brainspark is today announcing thatGeosim (www.geosim.co.il), the 3D city technology and modelling producer, in whichBrainspark has a holding of (44.11)%, has entered into a new agreement withCRASH Ventures LLC, a US private equity firm, (the "Firm") (the"GeosimConsulting Agreement"), an Oregon limited liability company, accordingto which Crash LLC will act as exclusive consultant. Under this new agreementthe Crash exclusivity period has been extended from 31 May 2008 to 31 May 2010. Crash LLC will assist Geosim in raising a total of $3,000,000 (£1,485m) of whichprivate investors in America have subscribed $200,000 (£99,000), at a pre-moneyvaluation of $22,000,000 (£10,888,000). After the exercise of approved ESOP andpost conversion by Crash LLC of their options and "Bonus Warrants" Brainsparkfully diluted will be interested in (39.53%) of Geosim. On full subscription ofthe $3,000,000 ((£1,485m) the holding by Brainspark in Geosim will be diluted to(34.7%). At a Geosim valuation of $22,000,000 (£10,888,000) Brainspark's (39.53%) equityheld in Geosim is valued at $8,696,600 (£4,300,000). This alone is equivalent to 1.30p pershare. The value of Geosim in the books (Balance Sheet) of Brainspark is £1.83million. Geosim has developed a unique 3D city modelling technology. Applicationsinclude urban planning and development, tourism, estate agency, law enforcement,advertising, entertainment and the security and rescue services. The newPhiladelphia 3D online website is due for launch before year-end. For further information, please contact: Francesco Gardin, Brainspark plc, telephone: 00 39 335 296573 Roland Cornish, Beaumont Cornish Limited, telephone: 020 7628 3396---------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange