Oslo, 18 January 2024: Reference is made to the stock exchange announcement
published by Observe Medical ASA (the "Company" or "Observe Medical") on 12
December 2023 regarding the final results of the rights issue of minimum
69,230,770 new shares and maximum 211,538,461 new shares in the Company at a
subscription price of NOK 0.26 per share (the "Rights Issue").

The Company aimed to raise between minimum NOK 18 million and maximum NOK 55
million in gross proceeds in the Rights Issue.

The total gross proceeds from the Rights Issue were NOK 35,670,322.48, of which
NOK 21,525,405.98 was settled by way of cash payment and NOK 14,144,916.50 was
settled by way of set-off against the shareholder loans (as further described in
the minutes from the extraordinary general meeting held by the Company on 22
November 2023). The Rights Issue raised net cash proceeds of approximately NOK
16 million.

The Rights Issue was accordingly subscribed by approximately 65% of the maximum
gross proceeds.

The use of the proceeds from the Rights Issue was described as follows in the
prospectus for the Rights Issue:

 i. The minimum proceeds from the Rights Issue will cover the working capital
needs in relation to the ramp up of production and sale of the Unometer
Portfolio.

Any excess proceeds in the Rights Issue will be used for;

ii. General corporate purposes, including working capital needs in relation to
continuous product development and ramp up of sales activities for Sippi and
Biim ultrasound probe;
iii. To finance the next instalment of USD 0.5 million in connection with the
Convatec Transaction; and
iv. Debt conversion of existing loans of up to NOK 20.1 million to reduce
interest bearing debt and pledge in the Company's assets.

Observe Medical is fully focused and committed to the ramp up of the production
capacity and the continuous commercial progress for the Company's UnoMeter
portfolio.

In a remarkably short span of time, the Company has achieved a production
capacity equivalent to Convatec's historical levels for the UnoMeter 500
product, which is a testament to Observe Medical's rapid progress and dedication
to meeting market demands. Furthermore, Observe Medical is actively engaged in
ongoing initiatives aimed at accelerating production and successfully bringing
the UnoMeter Safety Plus product to the market.

The UnoMeter portfolio is experiencing rapid commercial expansion, having
secured orders from a total count of 18 countries. The favorable clinical
evaluations contribute positively to the reputation of the UnoMeter products,
demonstrating confidence in their continued success across diverse markets.

On the back-end of the introduction of the Unometer portfolio, Sippi is very
strategic positioned and is planned to be introduced into the same, but also
several additional, sales channels for an even broader distribution. There is a
broad international demand for Sippi, which is a device replacing one of the
last manual monitoring procedures in intensive care. The UnoMeter portfolio is
an important step for Observe Medical to be established as a preferred supplier
in the urine measurement segment. The continuous expansion of the distribution
network is expected to create a unique market access channel also for Sippi®
into the market.

For the Biim ultrasound probe, the Company is evaluating various strategic
alternatives and monitoring the situation closely as the net proceeds from the
Rights Issue where not sufficient to improve the working capital needs for the
continued product development and ramp up of sales activities for the Biim
ultrasound probe. Observe Medical has an agreement with Fresenius Medical Care
with an aim to fully roll-out of the ultrasound probe in their approximately
3,000 dialysis clinics in the US. Until now a total of 265 Fresenius clinics
have received Biim ultrasound probes.

Fresenius is now working with a KPI study to support a final investment decision
for full scale implementation in their dialyses clinics. This process is more
time-consuming than previously anticipated, and the Company is now in advanced
discussions with Fresenius Medical Care about the next steps on the way to a
final investment decision.

The Company will evaluate various strategic options for the Biim ultrasound
probe based on among other the outcome of these discussions and the financial
resources available to Observe Medical. Consequently, no assurance can at this
stage be given that the Company will pursue continued product development and
ramp up of sales activities for this product.

For further information about the Company, please contact:

Rune Nystad, CEO Observe Medical

Mobile: +47 916 24 683

E-mail: rune.nystad@observemedical.com

Per Arne Nygård, CFO 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.

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange