Observe Medical ASA: Agreement reached with Convatec to defer payments by 12 months

19 Nov 2024 12:15 CET

Oslo, 19 November, 2024 - Reference is made to the stock exchange announcement
published by Observe Medical ASA (the "Company" or "Observe Medical") on 12
November 2024, in which it inter alia was stated that the Company is in dialogue
with strategic and financial partners to evaluate options to further strengthen
its working capital situation.

The Company has today, through its subsidiary Observe Medical AS, reached an
agreement with Convatec/Unomedical to defer all outstanding payments of
consideration pursuant to the asset transfer agreement with Convatec/Unomedical
for the acquisition of the UnoMeter T portfolio, totaling USD 3,895,000, by 12
months. The remaining consideration will be payable as follows:

· USD 500,000 shall be paid on 28 June 2025; (with an option for the Company
to defer the payment for six months)
· USD 1,000,000 shall be prepaid by 30 December 2025 (with an option for the
Company to defer the payment for six months); and
· the remaining portion of the consideration will be paid at completion of the
transaction, and no later than 1 September 2026.

Under the amended terms, the Company will pay interest on these deferred amounts
at a rate of 7.8% per annum. The interest payments will be calculated from (i)
28 June 2024, for the first consideration instalment and (ii) 30 December 2024,
for the second consideration instalment. The interest will be payable on a
quarterly basis with a first payment amounting to USD 10,000 on 20 December
2024, and subsequent quarterly payments starting on 1 April 2025. No other
changes have been made to the agreement.

Jørgen Mann, CEO of Observe Medical, commented, "We're pleased with this 12
-month deferral agreement, as it provides valuable financial flexibility to
focus on scaling up our core business for profitability. We appreciate
Convatec's collaborative approach, which helps us stay on track toward
sustainable growth and creating long-term value for our shareholders."

For further information, please contact:

Jørgen Mann, CEO Observe Medical
Mobile: +45 408 67 558
E-mail: jorgen.mann@observemedical.com

Johan Fagerli, CFO Observe Medical
Mobile: +47 958 12 765
E-mail: johan.fagerli@observemedical.com

The information in this stock exchange announcement is considered to be inside
information pursuant to the EU Market Abuse Regulation and is published in
accordance with section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was issued by Johan Fagerli, CFO of the
Company, on 19 November 2024 at 12:10 hours (CET), on behalf of the Company.

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 and ultrasound, in combination with targeted M&A and
distribution. Observe Medical is working with a network of leading distributors
to provide outstanding solutions for healthcare professionals globally.

The Company is headquartered in Oslo, Norway.

Further information is available at www.observemedical.com.

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