Observe Medical secures new funding
Oslo, 11 September 2023 - Observe Medical ASA (the "Company" or "Observe Medical") has secured new loans with the largest shareholders totaling NOK 7.25 million (the "Loans"). The Loans will be used to finance the first instalment under the asset transfer agreement with Unomedical and running business.
The Company will immediately receive payment of NOK 3.2 million to finance the first instalment under the asset transfer agreement with Unomedical. The remaining NOK 4.05 million is subject to an agreement between the parties and will be granted for general corporate purposes.
"In Observe Medical, we are fortunate to have strong support and commitment from the owners. With the backing from our largest shareholders, we are well positioned to significantly enhance our product offering and market presence, supporting our growth strategy and long-term ambition," said Rune Nystad, CEO of Observe Medical ASA.
The terms of the Loans are 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 fully secured by a pledge in all assets in Observe Medical ASA. The lenders may choose to utilize the Loans (including accrued interest and unaccrued interest calculated until maturity) fully or partly to set off against any subscription of shares in the Company during the terms of the Loans.
In parallel, a proposal for a payment deferral arrangement towards current creditors has been put forth by the Company. The proposal aims to alleviate immediate financial pressures and provide the Company with the necessary time to restore its financial stability.
For further information, please contact:
Rune Nystad, CEO Observe Medical
Mobile: +47 916 24 683
E-mail: [email protected]
Per Arne Nygård, CFO Observe Medical
Mobile: +47 411 04 345
E-mail: [email protected]
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.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.