Baltic Sea Properties

Share Issue/Capital Change • Jan 9, 2019

BSP – Commencement of subscription period in Rights Issue

BSP – Commencement of subscription period in Rights Issue

This announcement is not for release, publication or distribution (directly or indirectly) in or to the United States, Canada, Australia or Japan. It is not an offer of securities for sale in or into the United States, Canada, Australia, the Hong Kong Special Administrative Region of the People's Republic of China, South Africa or Japan.

Reference is made to the stock exchange announcement by Baltic Sea Properties AS (the “Company”) on 7 January 2019 regarding a rights issue of minimum NOK 24 million and maximum 48 million (the “Rights Issue”). Completion of the Rights Issue is conditioned upon minimum subscriptions equaling NOK 24 million.

The Rights Issue comprises minimum 800,000 and maximum 1,600,000 new shares in the Company, each with a nominal value of NOK 0.10, at a subscription price of NOK 30 per share (the «Offer Shares»). The subscription period for the Rights Issue commences today Wednesday 9 January 2019 at 09:00 (CET) and ends on Wednesday 23 January 2019 at 16:30 (CET).

Existing shareholders will be granted subscription rights for the Offer Shares in the Rights Issue pro rata to their existing shareholding in the Company, with each subscription right giving right to subscribe and be allocated one (1) Offer Share in the Rights Issue. The shareholders will receive subscription rights on the basis of their shareholding in the Company as of the expiry of 7 January 2019 (as registered in the Company’s shareholders` register in the VPS as of the expiry of 9 January 2019 (the “Record Date”)). Oversubscription is allowed. Subscription of Offer Shares without subscription is not be allowed. The subscription rights will not be listed and be tradable on Merkur Market.

Each existing shareholder will be granted 0.31572 subscription right for each share in the Company registered as held as of the Record Date. Note that this is a correction of the number of subscription rights announced in the Company´s stock exchange announcement regarding the Rights Issue on 7 January 2019.

A national prospectus dated 8 January 2019 describing the Rights Issue is registered with the Norwegian Register of Business Enterprises in accordance with section 7-10 of the Norwegian Securities Trading Act. Neither the Financial Supervisory Authority of Norway nor any other public authority has performed a review, control or made any approval of the prospectus. The prospectus is not an EEA prospectus as defined in section 7-7 of the Norwegian Securities Trading Act. The prospectus is available at the Company´s website https://balticsea.no/.

For complete information regarding the Rights Issue, including key dates for the Rights Issue and risk factors relating to the Company and the shares, please the prospectus.

A letter with further details regarding the Rights Issue is sent to each existing shareholder as of the Record Date.

For further information, please contact:

Lars Christian Berger, CEO

Tel: +47 930 94 319

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This announcement is made pursuant to the disclosure requirements pursuant to the Continuing Obligations for companies listed on Merkur Market.

This announcement is not and does not form a part of any offer for sale of any securities, and is not for release, publication or distribution, directly or indirectly, in the United States, or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. Baltic Sea Properties AS does not intend to register its securities in the United States. The distribution of this announcement into jurisdictions other than Norway may be restricted by law. Persons into whose possession this announcement 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. This announcement has not been approved by any regulatory authority.