Black Sea Property AS

Related Party Transaction • Jul 6, 2021

Black Sea Property AS: Notifiable transactions in connection with debt conversion

Black Sea Property AS: Notifiable transactions in connection with debt conversion

Reference is made to the stock exchange notice on 30 April 2021, where it was announced that the general meeting of Black Sea Property AS (the "Company" or "BSP") had approved, inter alia, a share capital increase through conversion of debt (the "Debt Conversion"), at a price per share of NOK 3.38. The Debt Conversion was carried out to convert debt under a seller credit granted pursuant to share purchase agreements entered into with EPO Invest KS and Aheloy Beach Commercial AS (the predecessors of BSP).

In the Debt Conversion, a large number of investors subscribed for new shares in the Company. Among those investors were the following close associates of primary insiders in BSP:

• MTB Invest AS, a company controlled by chairman Egil Melkevik, subscribed for 135,657 new shares, each at the subscription price of NOK 3.38.

• Christinedal AS, a company controlled by Board member Hans Gulseth, subscribed for 322,268 new shares, each at the subscription price of NOK 3.38;

• E. Larre Holding AS, a company controlled by Board member Erik Sture Larre, subscribed for 416,313 new shares, each at the subscription price of NOK 3.38; and

• Rødningen Invest AS, a company controlled by Board member Kåre Rødningen, subscribed for 301,163 new shares, each at the subscription price of NOK 3.38.

Please also see the attached notification forms for further information.

Due to a mistake, these subscriptions have not been announced as primary insider disclosures earlier. However, the number of shares subscribed by each close associate described above was disclosed in an appendix to a board statement, which were released along with the notice for the general meeting on 20 April 2021. The share capital increase pertaining to the Debt Conversion was registered with the Norwegian Register of Business Enterprises on 30 May 2021.

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 Gardens. Sunrise Gardens Resort is a partially completed project and will upon completion comprise approximately 950 apartments as well as significant commercial space. Black Sea Property AS owns indirectly 75% of the project. Black Sea Property AS will work to finalize Sunrise Gardens Resort, to realize the project's added value through the sale of residential units and hotel operations.