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- Observe Medical Secures New Financing
Observe Medical secures new financing
23 Mar 2023 16:38 CET
Issuer
Observe Medical ASA
Oslo, March 23, 2023 - Observe Medical ASA ("Observe Medical" or "the Company")
has entered into loan agreements for its short term financing needs.
Further to the stock exchange announcement on 14 December 2022, the Company has
entered into loan agreements where the lenders have committed to an amount of
NOK 10 million. The Company will immediately receive payment of NOK 5 million
and, subject to agreement between the parties, an additional increase of NOK 5
million (the "Loans"). The Loans have been granted by shareholders of the
Company.
"We are fortunate in Observe Medical to have such strong support and
commitment from the owners. With the backing from our shareholders, we have laid
out a clear strategy and path to significantly expand our product portfolio and
business," said Rune Nystad, CEO of Observe Medical ASA.
The terms of each Loan is 12 months and the interest has been set to 20% per
annum, which shall be paid in full for the entire terms of the Loans also if the
Loans are prepaid by the Company.
During the terms of the Loans, the interest will be capitalized and added to the
principal amount of the Loans on a quarterly basis. The Loans will be unsecured
and the lenders will be entitled to utilize the Loans (including accrued
interest and unaccrued interest calculated until maturity) fully or partly to
set off against the subscription amount payable by the lenders for any new
shares subscribed by them if the Company issues new shares during the term of
the Loans.
The Company has offered its largest shareholders to participate as lenders for
the Loans. In light of (i) the Company's need to finance its short term
financing requirements, (ii) the current state of the financing markets, which
has made it difficult to secure other attractive financing alternatives, and
(iii) it has not been practical to offer the Loans more widely, the board has
concluded that the different treatment of shareholders is justified.
In parallel the Company is continuing conversations with potential creditors and
investors to support planned growth.
For further information, please contact:
Rune Nystad, CEO Observe Medical
Mobile: +47 916 24 683
E-mail: rune.nystad@observemedical.com
Per Arne Nygård, CFO of Observe Medical
Mobile: +47 411 04 345
E-mail: perarne.nygard@observemedical.com
About Observe Medical
Observe Medical is a Nordic medtech company that develops, markets and sells
innovative medtech products for the global market. The Company is committed to
improving patient welfare and patient outcomes, improving clinical data accuracy
and promoting positive health economics.
The Company seeks to drive growth by leveraging its expertise in sales and
commercialization of its broad portfolio of medical technology products, mainly
in urine measurement, ultrasound, anesthesiology/ICUs, surgery and wound care,
in combination with targeted M&A.
The Company is headquartered in Oslo, Norway, with additional offices in Narvik,
Norway and Gothenburg, Sweden, and subsidiaries in Finland and the US. In
addition, Observe Medical has a direct sale organization in the Nordics and a
distributor network internationally.
Further information is available at www.observemedical.com.
The information is required to be disclosed in accordance with the EU Market
Abuse Regulation. The information was submitted for publication by CFO Per Arne
Nygård at 16:30 CET, 23 March 2023
More information:
Access the news on Oslo Bors NewsWeb site
Source
Observe Medical ASA
Provider
Oslo Børs Newspoint
Company Name
OBSERVE MEDICAL
ISIN
NO0010865009
Symbol
OBSRV
Market
Euronext Expand