Black Sea Property AS

Share Issue/Capital Change • Mar 28, 2017

BLACK SEA PROPERTY AS: FINAL RESULT OF THE RIGHTS ISSUE - MANDATORY NOTIFICATION OF TRADE

BLACK SEA PROPERTY AS: FINAL RESULT OF THE RIGHTS ISSUE - MANDATORY NOTIFICATION OF TRADE

Reference is made to previous stock exchange announcements

and the general meeting's decision to resolve a rights issue

(the "Rights Issue") of minimum 1 and maximum 32,142,857 new

shares (the "Offer Shares") in Black Sea Property ("BSP" or

the "Company").

The subscription period for the Rights Issue ended on 27

March 2017 at 16.00 CET. The subscription price in the

Rights Issue was NOK 0.70. At the end of the subscription

period, BSP had received subscriptions for a total of

34,405,092 Offer Shares out of 32,142,857 Offer Shares

available, implying an oversubscription of approximately 2.2

million Offer Shares. However, approximately 3 million Offer

Shares were subscribed without the subscribers holding

subscription rights and these subscriptions have therefore

been disregarded.

The Board of Directors of BSP has approved the final

allocation of the Offer Shares based on the allocation

criteria set out by the general meeting and has allocated

31,518,583 Offer Shares in total to the subscribers. A total

of 25,407,830 Offer Shares have been allocated on the basis

of exercised subscription rights and 6,110,753 Offer Shares

have been allocated to subscribers on the basis of

oversubscription. The Rights Issue raised gross proceeds of

approx. NOK 22 million.

Payment for the Offer Shares allocated to the subscribers

falls due on 3 April 2017. Letters of allocation will be

distributed to investors giving notification of allocated

new shares and the corresponding amount to be paid by each

subscriber.

Reference is furthermore to the stock exchange notice dated

17 March 2017 regarding subscriptions made by the Company's

board members. Please see the enclosed document for an

overview of the Offer Shares allocated to the board members

and their holdings of shares in the Company following the

Rights Issue.

On 27 March 2017, CL-Holding AS (a company controlled by

directors Erik Larre and Hans Gulseth) made a subscription

of 500,000 Offer Shares at the subscription price of NOK

0.70. Simultaneously, CL-Holding AS entered into an

agreement to sell 500,000 shares in the Company to director

Hans Gulseth at a price of NOK 0.70 per share, corresponding

to a total purchase price of NOK 350,000. Further, chairman

Egil Melkevik has sold 428,572 shares in the Company to MTB

Invest AS (a company controlled by Egil Melkevik) at a price

of NOK 0.70 per share, corresponding to a total purchase

price of NOK 300,000. The above transactions are reflected

in the enclosed document.

For further information please contact:

Egil Melkevik, Chairman

Tel: +47 90 77 09 76

E-mail: egil.melkevik@imenco.com

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 Aheloy Beach Resort. Aheloy Beach Resort is a

partially-completed project and will upon

completion comprise over 1,000 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 Aheloy Beach Resort, to realize the

project's added value through the sale of residential units

and hotel operations.