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.