Electromagnetic Geoservices (EMGS) has seen progress in experiencing delays in payment and approval of invoices for an acquisition contract in the Americas.
The delays in payment and approval of these invoices continues. However, the company is experiencing progress both with regards to payment of approved invoices and approval of invoices ready for final submission to the customer.
As of December 24 and after September 30, 2019, EMGS has received cash payments of approximately USD 8.6 million under the contract, including cash advances received under a factoring facility related to the contract.
Based on current projections, EMGS expects to have a free cash position at December 31, 2019 in excess of USD 10 million.
This projection assumes, amongst other things, no further cash payments from the end customer before December 31, 2019.