Observe Medical secures new financing
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