Black Sea Property AS: Update on financing requirements and bookings

09 Feb 2023 15:22 CET

Reference is made to earlier stock exchange notices from Black Sea Property AS
(the "Company", and together with its consolidated subsidiaries, the "Group").

As disclosed in the stock exchange notice of 14 December 2022, a loan agreement
for a loan facility in the amount of EUR 7.5 million has been entered into
between Group company EPO Aheloy OOD ("EPO Aheloy", the development and
property-owning company for the Sunrise Gardens Resort) and Penchev Consult.
Funds under the loan facility has only recently been disbursed, initially in an
amount of EUR 4.5 million, due to negotiations with the Group's existing lender
UniCredit Bulbank on handling of the outstanding amounts under the EUR 6 million
loan owed by EPO Aheloy to UniCredit Bulbank.

EPO Aheloy is in the process of finalizing an agreement with UniCredit Bulbank
on handling of the remaining EUR 6 million loan, whereby EPO Aheloy has made a
principal payment of EUR 1.5 million (plus accrued interest) to Unicredit
Bulbank and the remaining EUR 4.5 million (plus accrued interest) will fall due
for payment in June 2023. EPO Aheloy should originally have paid a principal
payment of EUR 3 million (plus accrued interest), with the remaining EUR 3
million (plus accrued interest) due for payment with EUR 1,5 million in December
2023 and remaining amount in December 2024.

Even though this amended loan structure implies a shorter term for the loan, the
Company and its local Bulgarian partner, Mr. Boyan Bonev, believes that a
refinancing of loan taken up with UniCredit Bulbank can be achieved within June
2023 at customary terms.

Consequently, the loan facility from Penchev Consult has currently been used to;
(i) make the principal payment plus accrued interest to UniCredit Bulbank (with
approximately EUR 1.8 million in total), and (ii) repay EUR 2.5 million to Boyan
Bonev (i.e., to his holding company) in order to even out the ownership
contributions towards EPO Aheloy.

However, EPO Aheloy has a requirement for additional new capital in the short
term to finalize construction activities on the Sunrise Gardens Resort (the
"Resort") and to facilitate expected capital requirements in connection with the
abovementioned refinancing of the loan taken up with UniCredit Bulbank. The
Company will therefore start assessing the possibility of raising funds in the
amount of up to EUR 1 million for this purpose. In addition to the ongoing
financing activities in relation to the Resort, the Company will also be looking
to secure funding for its activities in Norway. The Company will provide further
information on these financing activities in due course.

Further, the Group is in the process of planning and obtaining bookings for the
summer season of 2023. The Resort will still be operated as a kids and family
camp for the forthcoming season, and the Group is very happy to announce that
the Resort is already close to fully booked for 10 weeks during the peak season.
Full booking is based on a total of approximately 1,500 beds in the Resort,
divided between the M and N buildings of the Resort.

Work is ongoing to increase activity and bookings during non-peak season. To
this effect, the Resort has now been made available for booking at the leading
online travel agency Booking.com and work is also ongoing for an updated webpage
for the Resort.

This level of booking will provide a positive gross result in EPO Aheloy, and
the Company will provide more detailed result estimates prior to the start of
the summer season of 2023.
For further information, please contact:

Egil Melkevik, Chairman
Tel: +47 90 77 09 76
E-mail: em@ms-solutions.no

About Black Sea Property AS:

Black Sea Property AS is a real estate company with holdings in a real estate
project on the Black Sea
coast called Sunrise Gardens. Sunrise Gardens Resort is a partially completed
project and will upon completion comprise approximately 950 apartments as well
as significant commercial space. Black Sea Property AS owns indirectly 75% of
the project. Black Sea Property AS will work to finalize Sunrise Gardens Resort,
to realize the project's added value through the sale of residential units and
hotel operations.

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