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Investors in SAExploration Holdings, Inc. (NASDAQ:SAEX) should be smiling from ear to ear today following the news that the seismic firm has received approximately $24.4 million of tax credit certificates from the state of Alaska’s Department of Revenue. The company further announced the receipt of Alaskan tax credit certificates and access to remaining $15 million under senior loan facility.

SAExploration shares reacted to the news, jumping nearly 41% to $10.56 in pre-market trading Tuesday.

Jeff Hastings, Chairman and CEO of SAE, commented, “We are very pleased that we have begun to receive tax credit certificates from the State of Alaska sooner than expected and access to the remaining $15.0 million under our Senior Loan Facility ensures our ability to progress through the receipt and monetization of the remaining tax credits. We believe the value that can ultimately be derived from these tax credit certificates, and those yet to be issued, will be highly accretive to the company and to our stockholders.”

While some applications for tax credit certificates are still being processed by the State of Alaska, and certain remaining applications cannot be filed until after January 1, 2017, SAE currently expects to receive an additional $60.5 million of tax credit certificates from the State of Alaska over the next twelve months. While the method, terms and conditions are not certain, the company remains optimistic that it will be able to ultimately monetize a significant portion of its tax credit certificates absent material changes in Alaskan laws and further believes this process could begin before the end of this year. Any amounts received for the tax credit certificates will be applied towards the company’s outstanding accounts receivable. Consistent with the company’s past disclosure practices, however, SAE does not intend to disclose the monetization of any of its tax credit certificates, outside of its customary disclosures made in its periodic filings with the SEC.

Under the terms of SAE’s recently completed comprehensive restructuring, receipt of certificates evidencing Alaskan tax credits in excess of $25.0 million was a condition precedent to the advance of the remaining $15.0 million available under the Senior Loan Facility. Having substantially satisfied this requirement by receiving $24.4 million, or approximately 98%, of the required $25.0 million in face value of tax credit certificates, on October 24, 2016, a majority of the lenders under the Senior Loan Facility entered into Amendment No.1 to the Senior Loan Facility agreement, which waived the $25.0 million requirement, thereby granting SAE access to the remaining $15.0 million. (Original Source)

SAExploration Holdings, Inc. is a geophysical seismic services company, offers a full range of seismic data acquisition services including program design, planning and permitting, camp services, survey, drilling, recording, reclamation and in-field processing. The company’s services include the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones between land and water and in shallow water, as well as seismic data field processing. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths up to 5,000 feet, the company offers a full suite of logistical support and in-field processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations.