Navamedic

Audit Report / Information • Apr 28, 2025

Navamedic ASA: Conclusion received from the Norwegian Financial Supervisory Authority

Navamedic ASA: Conclusion received from the Norwegian Financial Supervisory Authority

Reference is made to the stock exchange announcement on March 28, 2025 regarding

the letter received from the Norwegian Financial Supervisory Authority (the

"NFSA" or "Finanstilsynet") related to the accounting of loans Navamedic has to

Observe Medical ASA and the stock exchange announcement from the NFSA today in

which the NFSA informs that the NFSA concludes in this matter. The NFSA has

concluded that:

".the bond loan was credit impaired as early as in 2023 and that the company, in

accordance with IFRS 9 Financial instruments, should have recognized a material

expected credit loss. The disclosures of the loans in the company's 2023 annual

financial report had errors and omissions relating to requirements in IAS 1

Presentation of financial statements, IFRS 7 Financial instruments - disclosure

and IFRS 13 Fair value measurement. According to Finanstilsynet's assessment no

events occurred in 2024 that gave reason to conclude that the credit risk had

decreased, and therefore the bond loan should have been regarded as credit

impaired also as of 31 December 2024."

As also stated in the stock exchange announcement from the NFSA, Navamedic has

confirmed to the NFSA that Navamedic will correct the errors. The corrections

will be detailed in the Navamedic annual report that will be published on

Wednesday, April 30, and will only relate to the value of the loans on the

balance sheet, where the Loans Receivables and Equity will be reduced by

approximately NOK 17 million in 2023 and NOK 7 million in 2024. There are no

impacts on Revenues, Gross Margin, EBITDA nor Cash related to these corrections.

For further information, please contact:

Lars Hjarrand, CFO, Navamedic Mobile: +47 917 62 842 E-mail:

lars.hjarrand@navamedic.com

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to section 5-12 the Norwegian Securities Trading Act. This stock exchange

announcement was published by Lars Hjarrand, CFO of the Company, on 28 April

2025 at 16.43 hours CET on behalf of the Company.

About Navamedic:

Navamedic ASA is a Nordic pharmaceutical company dedicated to enhancing people's

quality of life by being a reliable supplier of high-quality prescription,

consumer health, and hospital products to hospitals and pharmacies. Our growing

product portfolio has been carefully selected to meet current public health

concerns, such as obesity, Parkinson's disease, antibiotics and metabolism, to

empower people to live healthier and more fulfilling lives. What sets us apart

is our deep-rooted commitment to understanding the needs and requirements of the

countries where we are present. Our local insight and competence enable us to

understand the specific needs of each country where we operate and ultimately to

gain market access. This makes us a preferred partner for international

companies expanding their footprint across the Nordics and Benelux regions,

through either in-licensing or out-licensing. Navamedic has been listed on the

Oslo Stock Exchange since 2006 (ticker: NAVA) and is headquartered in Oslo,

Norway. For more information, please visit Navamedic.com.