Reference is made to the stock exchange notice from Black Sea Property AS ("BSP"
or the "Company") on 22 April 2024, where the Company announced, inter alia,
that it was assessing its funding requirements and funding sources.

The Company is pleased to announce that it has now entered into agreements with
a consortium of existing shareholders (the "Investors") for an investment in the
Company of NOK 12.35 million, whereby the Investors will initially lend the
Company the above amount as shareholder loans (the "Shareholder Loan"). The
Shareholder Loans will carry an interest of 16% per annum. 

The Investors have further agreed to partially underwrite a contemplated rights
issue of new shares to raise gross proceeds of up to NOK 18 million (the "Rights
Issue"), where the Investors shall underwrite subscription of new shares for
gross proceeds of NOK 12.35 million (i.e., the same amount as the Shareholder
Loan). The Investors will settle their share deposits for shares allocated in
the Rights Issue through conversion of the Shareholder Loan and accrued interest
thereunder.

The Company has agreed with the Investors that the price per new share in the
Rights Issue shall be NOK 0.12 per new share, which is below the current par
value of the shares of the Company. The Company's Board of Directors will
therefore propose to the upcoming annual general meeting of the Company (the
"AGM") to carry out a share capital decrease in order to reduce the par value of
the Company's shares to NOK 0.05 per share. The completion of any share capital
decrease, Rights Issue and the conversion of the Shareholder Loans will be
subject to approval by general meetings of the Company.

The contemplated share capital decrease process is expected to be completed
during September 2024 and the Rights Issue will only commence after completion
of the share capital decrease process. The commencement of the Rights Issue will
also be subject to registration and publication of a national offering
prospectus.

Subject to completion of the Rights Issue, the Investors shall be entitled to an
underwriting commission of 10% of their respective underwriting obligations,
which shall be settled by delivery of newly issued shares in the Company at the
issue price in the Rights Issue.

Upon disbursement of the Shareholder Loan, the Company will be in compliance
with its share of the funding requirements for the ongoing construction and
completion works at the Sunrise River Beach Resort for the summer season of
2024.

Further, an agreement has been reached with the private lender Penchev for an
extension of the current EUR 5.2 million loan (excluding accrued interest) with
2 years, ie., until November 2026. As part of this agreement, the interest under
the loan will be increased to 18 % starting 30 November 2024 and a payment of an
interest contribution of EUR 200,000 prior to 7 November 2024 and EUR 250.000
prior to 7 November 2025.

The Company can also announce that it has been offered to enter into a put
option agreement with Trem Holding AD (a company controlled by Mr. Boyan Bonev,
the Company's local Bulgarian partner, and formerly known as Sunset Resort
Holding), whereby Trem Holding AD will be required to purchase the shares of EPO
Bulgaria OOD (a holding company owned by the Company for  its investment in the
Sunrise River Beach Resort) for an amount of EUR 4,000,000 if the put option is
exercised by the Company. The put option may be used before 30 November 2026.
The Company does currently not consider that the value of the put option
reflects the underlying values held by EPO Bulgaria OOD, but deems that the put
option offered provides the Company with a security for realizing certain value
in its investment in EPO Bulgaria OOD.

Further information about the Rights Issue and ancillary transactions will be
given in due course.
For further information, please contact:
 
Egil Melkevik, Chairman
Tel: +47 90 77 09 76
E-mail: em@ms-solutions.no
 
About Black Sea Property AS:
 
Black Sea Property AS is a real estate company with holdings in a real estate
project on the Black Sea coast called Sunrise River Beach Resort. Sunrise River
Beach Resort is a partially completed project and will upon completion comprise
approximately 950 apartments as well as significant commercial space. Black Sea
Property AS has indirect ownership to the project and will work to finalize
Sunrise River Beach Resort, to realize the project's added value through the
sale of residential units and hotel operations.

The information in this announcement is considered to be inside information
pursuant to the EU Market Abuse Regulation. This stock exchange announcement was
published by Egil Melkevik, Chairman, at the time and date provided.

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange