Gentian Diagnostics ASA

Share Issue/Capital Change • Jan 20, 2017

PRIVATE PLACEMENT - BOOKBUILDING IN TRANCHE 1 SUCCESSFULLY COMPLETED - APPLICATION PERIOD IN TRANCHE 2 COMMENCES TODAY

PRIVATE PLACEMENT - BOOKBUILDING IN TRANCHE 1 SUCCESSFULLY COMPLETED - APPLICATION PERIOD IN TRANCHE 2 COMMENCES TODAY

PRIVATE PLACEMENT - BOOKBUILDING IN TRANCHE 1 SUCCESSFULLY

COMPLETED - APPLICATION PERIOD IN TRANCHE 2 COMMENCES TODAY

Oslo, 20 January 2017

Reference is made to the stock exchange release from Gentian

Diagnostics AS ("Gentian" or the "Company") published

yesterday regarding the contemplated private placement of up

to NOK 100 million by issuance of up to 2,857,143 new shares

at NOK 35 per share (the "Private Placement").

The Company announces today that it has placed 2,714,286 new

shares (corresponding to NOK 95,000,010 in gross proceeds)

in Tranche 1 of the Private Placement. Tranche 1 was

substantially oversubscribed and attracted strong interest

from both existing shareholders and new high quality

institutional investors.

The application period in Tranche 2 comprising up to 142,857

new shares (corresponding up to NOK 4,999,995 in gross

proceeds) commences today at 08:00 CET and closes at 14:00

CET on 27 January 2017. Tranche 2 is principally directed

towards existing shareholders in the Company holding less

than 70,000 shares (as registered in the shareholder

register with VPS on 19 January 2017) and employees of the

Company that were not allocated shares in Tranche 1. No

minimum application amount applies to investors eligible for

Tranche 2.

The net proceeds from the Private Placement will be used to

further develop the Company's distribution platform, pursue

selected identified M&A opportunities, as well as for

general corporate purposes. As part of its growth strategy

the company may strengthen its organisation and management

team.

The completion of the Private Placement is conditioned upon

the corporate resolutions of the Company required to

implement the issue of the new shares, including approval by

an extraordinary general meeting of the Company expected to

be held on 30 January 2017, and registration of the

increased share capital of the Company. Notifications of

conditional allotment in Tranche 1 will be sent to the

applicants today through a notification issued by the

Managers (as defined below). Payment date of the new shares

is expected on 31 January 2017, shares are expected to be

delivered on or about 2 February 2017.

Following the registration of the new share capital

pertaining to the Private Placement, assuming the Tranche 2

is fully subscribed and the Private Placement is approved by

the extraordinary general meeting, the Company will have an

issued share capital of NOK 1,399,629.3 divided into

13,996,293 shares, each with a par value of NOK 0.10.

The waiver of the preferential rights inherent in the

Private Placement is considered necessary to ensure

successful completion.

Arctic Securities AS and DNB Markets, a part of DNB Bank

ASA, (together the "Managers") are engaged as Joint

Bookrunners in the Private Placement.

Aabø-Evensen & Co Advokatfirma AS is acting as legal advisor

to the Company in the Private Placement.

For more information, please contact:

Julie Alling Gryga

CFO, Gentian Diagnostics

E-mail: Julie.alling@gentian.no

Cell Phone: +47 472 62 628

Important information:

The release is not for publication or distribution, in whole

or in part directly or indirectly, in or into

Australia, Canada, Japan or the United States (including its

territories and possessions, any state of the United States

and the District of Columbia).

This release is an announcement issued pursuant to legal

information obligations, and is subject of the disclosure

requirements pursuant to section 5-12 of the Norwegian

Securities Trading Act. It is issued for information

purposes only, and does not constitute or form part of any

offer or solicitation to purchase or subscribe for

securities, in the United States or in any other

jurisdiction. The securities mentioned herein have not been,

and will not be, registered under the United States

Securities Act of 1933, as amended (the "Securities Act").

The securities may not be offered or sold in the United

States except pursuant to an exemption from the registration

requirements of the Securities Act. The Company does not

intend to register any portion of the offering of the

securities in the United States or to conduct a public

offering of the securities in the United States. Copies of

this announcement are not being made and may not be

distributed or sent into Australia, Canada, Japan or the

United States. The issue, exercise, purchase or sale of

subscription rights and the subscription or purchase of

shares in the Company are subject to specific legal or

regulatory restrictions in certain jurisdictions. Neither

the Company nor the Managers assumes any responsibility in

the event there is a violation by any person of such

restrictions.

The distribution of this release may in certain

jurisdictions be restricted by law. Persons into whose

possession this release comes should inform themselves about

and observe any such restrictions. Any failure to comply

with these restrictions may constitute a violation of the

securities laws of any such jurisdiction. The Managers are

acting for the Company and the Selling Shareholders and no

one else in connection with the Private Placement and will

not be responsible to anyone other than the Company and the

Selling Shareholders for providing the protections afforded

to their respective clients or for providing advice in

relation to the Private Placement and/or any other matter

referred to in this release.

Forward-looking statements:

This release and any materials distributed in connection

with this release may contain certain forward-looking

statements. By their nature, forward-looking statements

involve risk and uncertainty because they reflect the

Company's current expectations and assumptions as to future

events and circumstances that may not prove accurate. A

number of material factors could cause actual results and

developments to differ materially from those expressed or

implied by these forward-looking statements.