Navamedic ASA Restructures Lending Agreement with Observe Medical

Navamedic ASA Amends Loan Agreements with Observe Medical

Navamedic ASA has undertaken significant changes to its loan arrangements with Observe Medical ASA, enhancing financial stability for both companies involved. The adjustments primarily impact two loans currently held by Navamedic.

Details of the Loan Amendments

The first loan, initiated in September, has a current outstanding balance of approximately NOK 47,775,182. Meanwhile, the second loan has a balance of approximately NOK 6,083,868. Both loans initially had a maturity date set for January 31, 2025.

In response to a request from Observe Medical to extend the maturity terms of these loans, Navamedic has carefully weighed various alternatives before agreeing to modifications that will benefit both parties.

Conversion of Loan Amount into Shares

In a notable move, Navamedic has agreed to convert NOK 16,354,815.20 of Loan 1 into shares of Observe Medical ASA at a subscription price of NOK 0.40 per share. This conversion is contingent upon Observe Medical successfully completing a planned subsequent offering, which must raise a minimum of NOK 1,500,000. When executed, this conversion will result in the issuance of approximately 40,887,038 new shares to Navamedic.

Revised Payment Structure and Terms

Post-conversion, the outstanding balance of Loan 1 will be around NOK 31,500,000. The new due date for Loan 1 has been shifted to December 31, 2027. Monthly interest payments will commence on April 1, 2025, and an amortization schedule will begin thereafter, allowing for regular payments until the final balance is due.

Loan 2 will also see its due date extended until December 31, 2027, with interest payments beginning on the same date as Loan 1. Both loans will maintain their existing interest rates and terms, providing a degree of consistency for Navamedic as it navigates its lending obligations.

Conditions for Amendments

It's important to note that should Observe Medical's subsequent offering not meet the funding target, the agreed amendments—including the share conversion related to Loan 1—will not take effect. This condition signifies the depth of collaboration and reliance between these two entities as they work together in their financial strategies.

Leadership Insights

Kathrine Gamborg Andreassen, CEO of Navamedic, expressed confidence in the amendments, articulating the positive implications for both Navamedic and Observe Medical. She believes that these adjustments will significantly strengthen their partnership and financial standing.

Lars Hjarrand, the CFO of Navamedic, also emphasized that these changes reflect a strategic alignment with Observe Medical's future plans, positioning both companies for success.

About Navamedic

Navamedic ASA is a prominent Nordic pharmaceutical entity that focuses on enhancing the quality of life for individuals through the provision of high-quality prescription and consumer health products. Established in 2006 and listed on the Oslo Stock Exchange, Navamedic specializes in addressing contemporary public health challenges, including obesity and gastrointestinal disorders.

Commitment to Health Solutions

The company takes pride in its commitment to understanding local healthcare needs across the Nordic and Benelux regions. This client-centric approach ensures that Navamedic enhances its market presence and helps international firms navigate the complexities of Nordic healthcare.

Frequently Asked Questions

What changes were made to the loan agreements?

Navamedic ASA has amended the maturity dates and terms of its loan agreements with Observe Medical, including converting part of the loan into shares.

Why was the loan's maturity date postponed?

The postponement allows Observe Medical more time to address its funding needs, while Navamedic adjusts to support the collaboration.

What is the significance of converting part of the loan into shares?

This conversion allows Navamedic to participate in Observe Medical's equity upside, aligning both companies' interests moving forward.

Who can I contact for more information about Navamedic?

For further inquiries, please reach out to Navamedic's CEO, Kathrine Gamborg Andreassen, or CFO, Lars Hjarrand.

What is Navamedic's focus as a pharmaceutical company?

Navamedic is dedicated to providing high-quality healthcare products that address key health issues, ensuring better health outcomes in the Nordics.

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