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REG - Rock Solid ImagesThalassa HoldingsResponse to Offer
• Reuters is not responsible for the content in this press release. RSS YouTube MonApr 2,2012 6:21am EDT



RNS Number:

5944A pic

Rock Solid Images 02 April 2012 READ

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PRESS RELEASE 2nd April 2012

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Jun 2012

Houston RSI (Rock Solid Images pic AIM: RSI)

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to Offer by Thalassa Holdings

The Board of Rock Solid Images (RSI) notes the announcement

by Thalassa Holdings Ltd

('Thalassa') of an offer to acquire up to approximately 25.89% of the issued share capital of the Company at a price of 0.48 pence per share in cash or a share alternative of 1 Thalassa share for
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126 119

every 43 RSI shares held. There have been no substantive discussions between the companies, and the Board of RSI is

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concerned that Thalassa has provided no evidence that they will bring any added economic or industrial assistance to the business in the next phase of the Company's development.


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From our knowledge of the companies, the Board of RSI sees no strategic or operational synergies between the businesses. geophysical services industry: interpretation RSI and Thalassa operate in very different segments of the Thalassa appears to focus on marine seismic operations in

partnership with major geophysical service companies, whereas RSI provides quantitative
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and integration of seismic, CSEM and well log data directly to oil and gas companies.

Put simply, the Directors believe that many of Thalassa's customers are RSI's competitors.

In respect of their



the Directors do not propose to take up Thalassa's offer.

The Company announced on 12th March that it was seeking shareholder approval to de-list the
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Company from AIM and a General Meeting has been called for 11am on 4th April to that effect. For convenience a copy of that announcement is set out as Appendix A below.

CONTACT: Richard Cooper - Chief Executive Officer Bob Auckland - Chief Financial Officer Peter Reilly - Non Executive Chairman +1 7137232566 +44 (0) 7919 490911 +44 (0) 7881 920542



US 112287 +02-Apr-20 12+RNS20 120402



REG - Rock Solid ImagesThalassa

Holdings - Response to Offer

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+44 (0) 203 463 5000

FoxDavies Capital (Nominated Advisor and Broker) Barry Saint Simon Leathers www.rocksolidimages.com

AppendixA 12 March 2012 - Announcement Strategic Admission Review, End of Offer Period, Trading update, Proposed of Shares to Trading on AIM Cancellation of

RSI is pleased to provide the following strategic review and trading update for the six months ended 29 February 2012. Strategic Review completed and end of the Offer Period: The strategic review has now been completed and the key outcomes are: The Company offers



and parallel business streams to its clients: Well

and Surface Seismic services (WSS) and Well data Integrated with Seismic and Electromagnetic data (WISE). That offering will remain unchanged as a result of the strategic review; In its WISE product, the Company has a unique offering that is at a relatively early stage of the adoption cycle and a sale of the Company now would be unlikely to deliver full value to shareholders; and The Board has concluded that raising capital to continue to build on the significant progress made may well be more achievable if the Company de-lists from AIM and, accordingly, it has resolved to take steps to pursue the delisting of the Company's shares from trading on AIM. The Company is not in consideration of any offers for the entire issued share capital of the

Company and nor are any further offers being solicited. Consequently the Company can confirm that it is no longer in an "Offer Period" for the purposes of the Takeover Code. Financial update: The Group's half year ended on 29 February 2012. Revenues for each of its operating divisions in the six months to 29 February 2012 are expected to be as follows: Seismic characterisation 2011: £1.3 million); and The WISE seismiclCSEM integrated product line will achieve revenues of approximately £0.3 million (six months to 28 February 2011: £0.6 million). In aggregate, the Group's revenues are expected to be approximately £1.9 million for the six months to 29 February 2012 compared to £1.8 million (as adjusted for discontinued operations) for the six months to 28 February 2011. The Group is expecting to make a gross profit contribution of approximately £0.7 million representing approximately 35% of revenues for the six months to 29 February 2012. This compares with a gross profit contribution of approximately £0.5 million representing 29% of revenues for the six months to 28 February 2011. As revenues improve in the second half of the financial year so should the gross profit percentage on revenues. The Group continues to carry a corporate overhead, which is currently disproportionately high revenues are expected to be £1.6 million (six months to 28 February

compared to the contribution from its trading activities, which will result in a pre-tax loss in the £1.8 to £1.9 million range being reported for the six months to 29 February 2012. This compares with a £1.5 million pre-tax loss (as adjusted for discontinued operations) for the same period last year. The Group's cash balance at 29 February 2012 was £0.3 million, compared to £1.7 million at 31 August 2011. The figures for the six months to 29 February are unaudited and have yet to be reviewed by the www.reuters.com/article/20

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REG - Rock Solid ImagesThalassa

Holdings - Response to Offer

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Group's Independent Auditors. Current trading and prospects: Since 18 January 2012, when the Company reported its results for the 12 months ending 31 August 2011, it has continued to move forward with developing its business. Sales revenues in January and February were less than anticipated due to operational delays in processing client data, however management has now resolved the issue and the processing team is working hard to catch up. Revenues in the second half are anticipated to be significantly above those of the first half and will benefit from the large contract awards announced in November, December and January. Consequently the second half is expected to also be significantly more profitable than the first half at the pre-tax level. Total revenues for the full year to 31st August 2012 are expected to be in the £5.5 to £7 million range, which compares favourably with revenues of £4.0 million for the year ended 31 st August 2011. Although the Company's backlog and prospective pipeline are at record levels the aforementioned production delays and larger contracts require the Company to have a stronger working capital base and in order to address this short term requirement the Board has agreed, subject to finalising legally binding documentation, largest shareholders, with EuroTrans Skips AS ("EuroTrans") and East Hill Venture Fund, LLP (an affiliate of East Hill Hedge Fund, LLC ("East Hili")) two of the Company's to put in place a secured Credit Facility of up to $1 million. To the extent that it is drawn upon (and an initial advance of $250,000 has already been made) the Credit Line facility will carry an annual interest charge of 10.75% above US prime and will expire on 30 September 2012. Due to their respective holdings of 24.82% and 12.13% in the ordinary share
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Trans and East Hill are classified as related parties for the purposes ectors of the Company have consulted with its nominated adviser, Fox-Davies Capital Limited, and consider that the terms of the Credit Facility are fair and reasonable insofar as the Company's shareholders are concerned.

Proposed Cancellation of Admission of Shares to Trading on AIM and Notice of General Meeting: 1. Background to the proposed Cancellation of maintaining admission have concluded

Having undertaken a review of both the advantages and disadvantages three largest shareholders,

of the Ordinary Shares to trading on AIM, and after extensive discussions with the Company's the Directors, in consultation with those shareholders, that the admission should be cancelled. In reaching this conclusion, the Directors have taken the following factors into account: in the Directors' opinion, the trading price of the Ordinary Shares on AIM does not reflect the true value of the Company and its business; given the overall market conditions for small quoted companies, the Directors are of the opinion that it is (and will continue to be) difficult for the Company to attract meaningful equity investment through its continuing trading on AIM and the AIM quotation may be a detracting factor for potential private equity investors; the AIM quotation of the Ordinary Shares does not, in itself, offer investors the opportunity to trade in meaningful volumes or with frequency within an active market. With little trading volume, the Company's share price can move up or down significantly following trades of small numbers of shares; and the Directors estimate that annual direct and indirect costs of the Ordinary Shares' AIM quotation are at least £125,000. This estimate includes quotation expenses and advisory, legal and audit fees but excludes any costs associated with the considerable amount of senior executive time which is also spent dealing with the issues related to the AIM quotation. Given the overall market conditions for small quoted companies and the concentrated the Company's shareholding, nature of

the Directors see no reason to believe the low valuation and liquidity

will change substantially and consistently. Further, the Directors expect that the low valuation and liquidity will continue to impact directly and negatively on the Company's ability to raise adequate equity and debt financing based on appropriate valuations, and this could potentially damage the medium- and long-term interests and objectives of the Company. The Directors also believe that following the Cancellation the Company will, over time, be in a better position to attract investment from the private market on terms driven by a fundamental www.reuters.com/article/20 12/04/02/id US 112287 +02-Apr-20 12+RNS20 120402 3/7


REG - Rock Solid ImagesThalassa

Holdings - Response to Offer

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valuation of the business rather than a depressed public market price. The Directors believe this will, over time, allow a more favorable development of the Group with less dilution to shareholders. Despite the trading progress made as set out in the Company's trading update published today, the Directors do not anticipate an improvement in conditions in the short to medium term sufficient for the benefits of the AIM admission to outweigh the associated costs. Pursuant to AIM Rule 41, cancellation of the admission of the Ordinary Shares to trading on AIM requires the consent of not less than 75 per cent. of votes cast by Shareholders proxy) in a general meeting. The Company has notified the London Stock Exchange of the proposed Cancellation. anticipated that a circular (the "Circular") seeking the approval of Shareholders be issued to Shareholders approve the Cancellation, It is (in person or by

to the delisting will

on or about Thursday 15 March. In the event that Shareholders it is anticipated that the last day of dealings in the Ordinary Shares on

AIM will be 12 April 2012 and that the effective date of the Cancellation will be 13 April 2012. 2. Principal effects of the Cancellation there will be no public stock market on which Shareholders can trade their Ordinary Shares.

The principal effects of the Cancellation will include (amongst others): While the Company intends to put in place a third party trading facility as described below, there can be no assurance that a Shareholder will be able to purchase or sell any Ordinary Shares following Cancellation; no price will be publicly quoted for the Ordinary Shares; and the Company will not be subject to the AIM Rules and, accordingly, it will not (amongst other things) be required to retain a nominated adviser or to comply with the requirements of AIM in relation to the disclosure of price sensitive information or the disclosure of information on corporate transactions. Shareholders It is however the Directors' intention to maintain active communication with as described below.

If the Cancellation becomes effective, this will not affect the Company's position as a public limited company for the purposes of the UK Companies Act 2006 and the Board anticipates the Company will continue to be subject to the rules and other provisions of the UK Takeover Code for a period of ten years following the delisting becoming effective. 3. Transactions in the Ordinary Shares following the Cancellation and the

Whilst the Board believes that the Cancellation is in the best interests of Shareholders

Company, it recognises that the Cancellation will make it more difficult for Shareholders to buy and sell Shares should they wish to do so. The Company therefore intends to put in place a third party matched bargain trading facility for at least one year following the delisting to assist shareholders to trade in the Company's shares. Under this third party facility, Shareholders or persons wishing to acquire Ordinary Shares will be able to leave an indication with the third party facility provider that they are prepared to buy or sell at an agreed price. In the event that the third party facility provider is able to match that order with an opposite sell or buy instruction, the third party facility provider will contact both parties and then effect the bargain. Once such arrangements at www.rocksolidimages.com. If Shareholders Cancellation, wish to buy or sell Ordinary Shares on AIM they should do so prior to the approve the have been set up by the Company, details will be made available to Shareholders on the Company's \lllebsite

Cancellation becoming effective. As noted above, in the event that Shareholders April 2012 and that the effective date of the Cancellation will be 13 April 2012. 4. Settlement on CREST and Registrars

it is anticipated that the last day of dealings in the Ordinary Shares on AIM will be 12

The Shares will remain eligible for settlement in CREST. Accordingly, Shareholders will continue to be able to hold their Shares in CREST after the Cancellation. Capita Registrars will continue to serve as the Company's registrars. 5. Communications with Shareholders following the Cancellation and will continue to

The Board intends to maintain active communication with its shareholders, at www.rocksolidimages.com. It is also the Director's current intention to: www.reuters.com/article/20

post information in relation to the Company on the Company's investor relations \lllebsite

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REG - Rock Solid ImagesThalassa

Holdings - Response to Offer

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hold general meetings in accordance with applicable statutory requirements and the Company's articles of association (the "Articles"); . send Shareholders copies of the Company's audited accounts in accordance with applicable made statutory requirements and the Articles; and post certain information relating to the Company, including details of any arrangements to assist Shareholders to trade in Ordinary Shares, on its website.

As the Ordinary Shares are currently admitted to trading on AIM, the Company is not currently required to comply with the provisions of the UK Corporate Governance Code issued in June 2010 by the Financial Reporting Council. Nevertheless, the Company seeks, within the practical confines of being a small company and in so far as practicable, to act in compliance with these principles of good governance and following the Cancellation, whilst the Directors currently intend that the Company should continue to seek to comply with them insofar as is appropriate for an unquoted company, it is likely that the costs of certain aspects of corporate governance reduced, for instance it may not be practical to continue to have three independent directors on the Company's Board after Cancellation. 6. General Meeting may be non-executive

It is currently anticipated that a General Meeting will be held at 11.00 a.m. on Wednesday 4th April 2012 at the offices of Pinsent Masons LLP, 30 Crown Place, London EC2A 4ESfor the purpose of seeking Shareholders' approval to the Resolution. Notice of the General Meeting will be set out at on Thursday 15th March 2012 and to be made the end of a Circular explaining the Board's rationale for seeking the Cancellation and convening the General Meeting, to be posted to shareholders available at the Company's website at WIIIIW.rocksolidimages.com. 7. Action to be taken at the General Meeting will be enclosed with the Circular intend to be present at the General and available at the Company's website

A Form of Proxy for use by Shareholders to be posted to Shareholders

at WIIIIW.rocksolidimages.com. Whether or not Shareholders

Meeting they are asked to complete, sign and return the Form of Proxy to the Company's Registrars, Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU, as soon as possible but in any event so as to arrive no later than 11.00 a.m. on Monday 2nd April 2012. The completion and return of a Form of Proxy will not preclude Shareholders Shareholders from attending the General Meeting and voting in person should they wish to do so. Accordingly, whether or not intend to attend the General Meeting in person they are urged to complete and return the Form of Proxy as soon as possible. The Company's website may not be used for any purpose in connection with the General Meeting other than as may be expressly set out in this document. 8. Directors' recommendation as a whole and, accordingly, the Directors intend unanimously to recommend that vote in favor of the Resolution to be proposed at the General Meeting as they intend

The Directors consider that the Resolution will be in the best interests of the Company and its Shareholders Shareholders

to do (or to procure that others do) in respect of their own direct or indirect legal or beneficial holdings of 4,092,992 Ordinary Shares representing 2.59 per cent. of the current issued share capital of the Company.

This information is provided by RNS The company news service from the London Stock Exchange END


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