Observe Medical ASA - Disclosure of large shareholding

Mandatory disclosure pursuant to section 4-2 of the Norwegian Securities Trading Act by Navamedic ASA.

Reference is made to the previous stock exchange announcements from Observe Medical ASA (the "Company") announcing a fully underwritten rights issue of 25,714,286 new shares in the Company, raising gross proceeds of approximately NOK 180 million (the "Rights Issue").

In the Rights Issue, each existing shareholder of the Company as of 4 February 2022 (and being registered as such in Euronext Securities Oslo, the Norwegian Central Securities Depository (the "VPS") as at the expiry of 8 February 2022) were granted 1.311588 subscription rights for each share registered as held by the shareholder.

Each subscription right gives the right to subscribe for one new share in the Company in the Rights Issue. The subscription period commenced on 9 February 2022 and expires on 23 February 2022 at 16:30 CET. On 9 February 2022, Navamedic ASA received 5,538,478 subscription rights in the Rights Issue.

Following the completion of the Rights Issue, the share capital of the Company will be NOK 11,783,133.18 divided into 45,319,743 shares.

The calculations below are based on the new share capital and number of shares in the Company following the completion of the Rights Issue.

On 21 February 2022, Navamedic ASA sold 4,506,500 subscription rights in the Rights Issue of their total holding of 5,538,478 subscription rights in the Rights Issue (the "Disposal").

As of 21 February 2022, Navamedic ASA held 4,222,727 shares and voting rights in the Company (not including the subscription rights), corresponding to 21.54% of the shares and voting rights in the Company prior to the completion of the Rights Issue.

Following the Disposal and completion of the Rights Issue, Navamedic's aggregate holding of shares and voting rights (assuming no exercise of its remaining subscription rights) in the Company will be reduced to 9.32% of the total number of shares and voting rights in the Company, and Navamedic ASA will thereby cross each of the notifiable thresholds of 20%, 15% and 10%, respectively, with regards to shares and voting rights in the Company upon completion of the Rights Issue.