Fjord Defence Group ASA

Capital/Financing Update • Jan 22, 2021

Update financial restructuring

Update financial restructuring

Lysaker, 22 January 2021

With reference to the stock exchange release as of January 14, 2021 concerning the contemplated financial restructuring, please note the following update:

A letter to all noted creditors has been submitted with the offer to receive a settlement either in cash, equal to 15% of outstanding debt amount, or in shares, by converting outstanding debt amount into equity at a share price of NOK 0.5. If all creditors accept this offer and certain other conditions as stated in the stock exchange message dated 14 January 2021 are fulfilled, a group of solid and reputable Norwegian investors has pre-committed to inject USD 15 million in new equity through a private placement at a share price of NOK 0.1. Existing shareholders of Axxis as well as other investors will also be given the opportunity to participate.

The group of investors that has pre-committed to the private placement has considerable experience from similar situations and industries and is led by Arne Fredly (Apollo Asset Limited), Edvin Austbø (Alden AS), Fredrik Sneve (F2 funds AS), Kristian Lundkvist (Middelborg AS) and Ketil Skorstad (Tigerstaden AS).

The offer has been well received by Axxis’ creditors. A clear majority of trade creditors and lenders have already accepted the offer, and the company is working intensively with the remaining creditors, including the bond holders, to clarify if they all will be willing to accept the offer.

Axxis has also received confirmation from Asker og Bærum tingrett that the court hearing for consideration of the bankruptcy petition scheduled for 22 January 2021 has now been postponed following agreement with the relevant creditor, who has accepted the offer on equal terms as submitted to all creditors. This will allow Axxis to continue to work towards a voluntary solution in line with the proposal as presented on 14 January 2021 and as referenced above. If remaining relevant creditors do not consent to the voluntary solution, Axxis is likely to file for formal reconstruction to be handled by the courts.

The Board of directors of Axxis is of the opinion that the offer presented by the group of financial investors represent the best solution to the company’s stakeholders and recommends that the voluntary offer is accepted by all creditors. The Board also believes that it will be beneficial to all stakeholders to achieve a voluntary solution instead of filing for a reconstruction.

Contacts:

Ronny Bøhn, CEO

Ronny.Bohn@axxisgeo.com

+47 905 58 517

Nils Haugestad, CFO

Nils.Haugestad@axxisgeo.com

+47 977 04 439

About Axxis

Axxis Geo Solutions (Axxis) is a pure-play ocean bottom node seismic company uniquely positioned to pursue both contract and multi-client seismic. Axxis specializes on delivering tailored seismic solutions and flexible project management and execution to oil and gas companies world-wide. Its operations are based on a scalable asset-light setup through chartering of vessels and nodes to complete seismic surveys.

Axxis is listed on Oslo Axess and traded under the ticker Axxis.

More information on www.axxisgeo.com.