OBSERVE MEDICAL ASA: Approval and publication of prospectus, listing of the tranche 2 private placement shares and launch of subsequent offering

19 Nov 2024 14:39 CET

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN AUSTRALIA, CANADA, HONG KONG, JAPAN, THE UNITED STATES OR ANY
OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE
UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE
SECURITIES DESCRIBED HEREIN.

Oslo, 19 November 2024

Reference is made to the stock exchange announcement by Observe Medical ASA (the
"Company" or "Observe Medical", OSE ticker "OBSVR") on 24 June 2024, regarding
the successful placement of a private placement in the Company raising gross
proceeds of NOK 22 million (the "Private Placement") and a potential subsequent
offering of up to 32,500,000 new shares (the "Subsequent Offering"), as well as
the stock exchange announcement made on 18 November 2024 where the Company inter
alia announced that its board of directors had resolved to carry out the
Subsequent Offering and to increase the share capital by a minimum of NOK 0.26
and a maximum of NOK 8,450,000, through the issuance of a minimum of one and a
maximum of 32,500,000 new shares, each with a nominal value of NOK 0.26 (the
"Offer Shares") in connection with the Subsequent Offering.

Approval and publication of prospectus:

The Norwegian Financial Supervisory Authority (Nw. Finanstilsynet) has today, on
19 November 2024, approved a prospectus prepared by the Company for (i) the
listing on Euronext Expand of 16,862,962 shares issued in tranche 2 of the
Private Placement (the "Tranche 2 Shares"), (ii) the listing on Euronext Expand
of 40,887,038 new shares resolved issued in November 2024 in connection with a
conditional loan conversion and (iii) the Subsequent Offering (including the
listing of the issued Offer Shares on Euronext Expand)(the "Prospectus").

The Prospectus, including the subscription form for the Subsequent Offering,
will be made available at the Company's website: www.observemedical.com/investor
-relations/, as well as at www.carnegie.no/ongoing-prospectuses-and-offerings.

Listing of Tranche 2 Shares:

The 16,862,962 Tranche 2 Shares in the Private Placement have been issued in the
Norwegian Central Securities Depository (the "ES-OSL") on a temporary ISIN NO
0013310128 (http://tel:0013310128), and have not yet been listed and become
tradeable on Euronext Expand.

It is expected that the Tranche 2 Shares will commence trading on Euronext
Expand on or about 20 November 2024, following the transfer of the Tranche 2
Shares from the temporary ISIN NO 0013310128 (http://tel:0013310128) to the
Company's listed ISIN NO 0010865009 (http://tel:0010865009).

The Subsequent Offering:

The Subsequent Offering consists of an offer by the Company to issue up to
32,500,000 Offer Shares, each with a nominal value of NOK 0.26, at a
subscription price of NOK 0.40 per Offer Share (the "Offer Price"), being equal
to the subscription price in the Private Placement. Subject to all Offer Shares
being issued, the Subsequent Offering will result in NOK 13 million in gross
proceeds to the Company.

The subscription period for the Subsequent Offering will commence on 20 November
2024, at 09:00 hours (CET) and expire on [4] December 2024 at 16:30 hours (CET)
(the "Subscription Period").

The shareholders of the Company as of 24 June 2024 (being registered as such in
the Norwegian Central Securities Depository (the "ES-OSL") on 26 June 2024
pursuant to the ES-OSL's standard two days' settlement procedure (the "Record
Date")), who (i) were not allocated shares in the Private Placement, and (ii)
are not resident in a jurisdiction where such offering would be unlawful, or
(for jurisdictions other than Norway), would require any prospectus filing,
registration document or similar document or action (such eligible shareholders
jointly the "Eligible Shareholders"), will be granted subscription rights that
will give a preferential right to be allocated Offer Shares (the "Subscription
Rights").

Each Eligible Shareholder will be granted 0.41850 Subscription Right for every
existing share registered as held by such Eligible Shareholder as of the Record
Date, rounded down to the nearest whole Subscription Right. Each Subscription
Right will, subject to applicable law, give the right to subscribe for, and be
allocated, one (1) Offer Share in the Subsequent Offering at the Offer Price.
Over-subscription will be permitted. Subscription without Subscription Rights
will not be permitted.

The Subscription Rights must be used to subscribe for Offer Shares prior to
expiry of the Subscription Period on 4 December 2024 at 16:30 hours (CET).
Subscription Rights that are not used to subscribe for Offer Shares before the
expiry of the Subscription Period will have no value and will lapse without
compensation to the holder.

Notifications of allocated Offer Shares and the subscription amount to be paid
by each subscriber are expected to be distributed to the subscribers on or about
5 December 2024. The payment date for the Offer Shares is expected to be on or
about 10 December 2024. Subject to timely payment of the Offer Shares allocated
in the Subsequent Offering, the issuance and delivery of the Offer Shares is
expected to be completed on or about 16 December 2024. The Offer Shares are
expected to commence trading on Euronext Expand on or about 16 December 2024,
but not before the Company has published a stock exchange announcement
announcing the registration of the share capital increase pertaining to the
Subsequent Offering in the Norwegian Register of Business Enterprises.

Further information about the Subsequent Offering and the subscription
procedures is included in the Prospectus.

Advisors:

Carnegie AS is acting as the manager in the Subsequent Offering (the "Manager").
Advokatfirmaet Thommessen AS is acting as legal advisor to Observe Medical in
relation to the Subsequent Offering.

This information is subject to the disclosure requirements according to Section
5-12 of the Norwegian Securities Trading Act.

For further information, please contact:

Jørgen Mann, CEO Observe Medical

Mobile: +45 408 67 558 (http://tel:+45 408 67 558)

E-mail: jorgen.mann@observemedical.com

Johan Fagerli, CFO Observe Medical

Mobile: +47 958 12 765 (http://tel:+47 958 12 765)

E-mail: johan.fagerli@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
commercialisation 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.

- IMPORTANT INFORMATION -

The information contained in this announcement is for background purposes only
and does not purport to be full or complete. No reliance may be placed for any
purpose on the information contained in this announcement or its accuracy,
fairness or completeness. Neither the Manager, nor or any of its affiliates or
any of their respective directors, officers, employees, advisors or agents
accepts any responsibility or liability whatsoever for, or makes any
representation or warranty, express or implied, as to the truth, accuracy or
completeness of the information in this announcement (or whether any information
has been omitted from the announcement) or any other information relating to the
Company, its subsidiaries or associated companies, whether written, oral or in a
visual or electronic form, and howsoever transmitted or made available, or for
any loss howsoever arising from any use of this announcement or its contents or
otherwise arising in connection therewith. This announcement has been prepared
by and is the sole responsibility of Observe Medical.

Neither this announcement nor the information contained herein is for
publication, distribution or release, in whole or in part, directly or
indirectly, in or into or from Australia, Canada, Japan, Hong Kong, South Africa
or the United States (including its territories and possessions, any State of
the United States and the District of Columbia) or any other jurisdiction where
to do so would constitute a violation of the relevant laws of such jurisdiction.
The publication, distribution or release of this announcement may be restricted
by law in certain jurisdictions and persons into whose possession any document
or other information referred to herein should inform themselves about and
observe any such restriction. Any failure to comply with these restrictions may
constitute a violation of the securities laws of any such jurisdiction.

This announcement is not an offer for sale of securities in the United States.
The securities referred to in this announcement have not been and will not be
registered under the U.S. Securities Act, and may not be offered or sold in the
United States absent registration with the U.S. Securities and Exchange
Commission or an exemption from, or in a transaction not subject to, the
registration requirements of the U.S. Securities Act and in accordance with
applicable U.S. state securities laws. The Company does not intend to register
any securities referred to herein in the United States or to conduct a public
offering of securities in the United States.

This announcement is an advertisement and is not a prospectus for the purposes
of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14
June 2017 (the "EU Prospectus Regulation") (together with any applicable
implementing measures in any Member State). All of the securities referred to in
this announcement have been offered on the basis of a listing and offering
prospectus. Investors should not subscribe for any securities referred to in
this announcement except on the basis of information contained in the
aforementioned prospectus.

In any EEA Member State other than Norway, this communication is only addressed
to and is only directed at qualified investors in that Member State within the
meaning of the EU Prospectus Regulation, i.e. only to investors who can receive
the offer without an approved prospectus in such EEA Member State.

This communication is only being distributed to and is only directed at persons
in the United Kingdom that are "qualified investors" within the meaning of the
EU Prospectus Regulation as it forms part of English law by virtue of the
European Union (Withdrawal) Act 2018 and that are (i) investment professionals
falling within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005, as amended (the "Order") or (ii) high net
worth entities, and other persons to whom this announcement may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as "relevant persons"). This communication
must not be acted on or relied on by persons who are not relevant persons. Any
investment or investment activity to which this communication relates is
available only to relevant persons and will be engaged in only with relevant
persons. Persons distributing this communication must satisfy themselves that it
is lawful to do so.

This announcement is made by, and is the responsibility of, the Company. The
Manager and its affiliates are acting exclusively for the Company and no-one
else in connection with the transactions described in this announcement. They
will not regard any other person as their respective clients in relation to the
transactions described in this announcement and will not be responsible to
anyone other than the Company, for providing the protections afforded to their
respective clients, nor for providing advice in relation to the transactions
described in this announcement, the contents of this announcement or any
transaction, arrangement or other matter referred to herein.

In connection with the transaction described in this announcement, the Manager
and any of its affiliates, acting as investors for their own accounts, may
subscribe for or purchase securities and in that capacity may retain, purchase,
sell, offer to sell or otherwise deal for their own accounts in such securities
of the Company or related investments in connection with the transactions
described in this announcement or otherwise. Accordingly, references in any
subscription materials to the securities being issued, offered, subscribed,
acquired, placed or otherwise dealt in should be read as including any issue or
offer to, or subscription, acquisition, placing or dealing by, the Manager and
any of its affiliates acting as investors for their own accounts. The Manager
does not intend to disclose the extent of any such investment or transactions
otherwise than in accordance with any legal or regulatory obligations to do so.

Matters discussed in this announcement may constitute forward-looking
statements. Forward-looking statements are statements that are not historical
facts and may be identified by words such as "believe", "aim", "expect",
"anticipate", "intend", "estimate", "will", "may", "continue", "should" and
similar expressions. The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions. Although the Company believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant
known and unknown risks, uncertainties, contingencies, and other important
factors which are difficult or impossible to predict and are beyond its control.
Such risks, uncertainties, contingencies, and other important factors could
cause actual events to differ materially from the expectations expressed or
implied in this release by such forward-looking statements. Forward-looking
statements speak only as of the date they are made and cannot be relied upon as
a guide to future performance. The Company, the Manager and their respective
affiliates expressly disclaims any obligation or undertaking to update, review
or revise any forward-looking statement contained in this announcement whether
as a result of new information, future developments or otherwise. The
information, opinions and forward-looking statements contained in this
announcement speak only as at its date and are subject to change without notice.

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