Reference is made to the stock exchange notice dated 21 October 2024 including,
inter alia, an update on debt financing and the process for establishing
necessary security for an increased loan amount provided by Penchev Consult.
 
Black Sea Property AS ("BSP" or the "Company") and Trem Holding AD (a holding
company owned by BSP's local Bulgarian partner, Mr. Boyan Bonev), as owners of
the Sunrise Gardens Resort (the "Resort")  are currently in initial discussions
with parties interested in acquiring the Resort, with an ambition to conclude a
preliminary agreement during the next six months. A preliminary agreement would
typically imply granting exclusivity and include main terms and conditions for a
definitive agreement, including, among other matters, conditions precedent for
completion of a transaction. The Board wants to emphasize that the ongoing
discussions are of a preliminary character, including, without limitation, with
regards to purchase object (completed vs. non-completed units), valuation and
payment terms and transaction model (property vs. company sale).
 
Further, the Company has received preliminary offers for two of the land plots
in the towns of Byala and Obzor respectively, valued slightly above book value
for both plots (total indication approx. EUR 600.000) . These land plots were
acquired by BSP through the merger with Bulgaria Eiendom Invest AS in 2021. A
further clarification of any transaction for these land plots is expected to
take up to 6 months.
 
The process for a corporate restructuring of the jointly owned real estate
company EPO Aheloy plc. into a joint stock company in Bulgaria is still not in
place, and consequently the planned additional bridge financing of up to EUR 2,0
million (the "Penchev II Loan") has not been made available.  This means that
the outstanding loan of EUR 450.000 from BSP to EPO Aheloy has not been repaid,
and therefore the shareholder loan of approx. NOK 5,3 million from certain
shareholders of the Company to BSP is still outstanding (latest agreed due date
for repayment is June 30, 2025, with conversion right for lenders thereafter).
Alternative corporate structures are being considered to speed up the process
for obtaining the Penchev II Loan.
 
As previously informed, a satisfactory liquidity situation for BSP parent
company has been dependent of the repayment of the mentioned EUR 450.000 loan
granted to EPO Aheloy , based on the availability of the Penchev II loan.
Therefore, BSP will shortly need funds for day-to-day management and operations
of minimum NOK 2,0 million, which is anticipated to cover planned operating
expenses for the Company for the remaining calendar year 2025. A process has
been initiated by the Board to secure such funds, and further information will
be given in due course.
 
For further information, please contact: 
 
Egil Melkevik, Chairman 
Tel: +47 90 77 09 76 
E-mail: em@ms-solutions.no 
 
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 Sunrise River
Beach Resort. Sunrise River Beach Resort is a partially completed project and
will upon completion comprise approximately 950 apartments as well as
significant commercial space.