STATEMENT OF CLARIFICATION – Lifecare signs joint venture to develop and digitize technologies

STATEMENT OF CLARIFICATIONLifecare AS’ Board would like to clarify and substantiate the notice publishedon the stock exchange on 15 January 2020:Lifecare AS and IMS Capital Partners GmbH have established Digital DiagnosticsAG to complete Lifecare AS’ sensor technology, Sencell. The agreement betweenthe parties entails that IMS Capital Partners GmbH will finance the completionof Sencell, so that Lifecare AS does not need the planned capital increase inthe second half of 2020. Lifecare AS keeps all its rights to its existing IP andhas full access to future IP. By IMS Capital Partners GmbH investing EUR 7,500,000 as working capital inDigital Diagnostics AG, Sencell will be further developed and completed. Inreturn, Lifecare AS will give Digital Diagnostics AG a license agreement forLifecare AS’ technology and IP in all business areas beyond Lifecare AS’business area (long-term continuous glucose monitoring of patients with diabetestype 1 and 2). The license is not exclusive to Digital Diagnostics AG, butDigital Diagnostics AG expects great value creation as a result of immediateaccess to the Lifecare technology. This value creation will benefit allshareholders. Digital Diagnostics AG will be owned 50,1 % by IMS CapitalPartners GmbH, 25 % by Lifecare AS and 24,9 % by the company’s employees andBoard. When Lifecare AS’ sensor technology is developed, Lifecare AS will have fullownership of the original IP that has been developed up until 15 January 2020.Lifecare AS will also have unlimited rights to utilize all technology and IPdeveloped through the cooperation with Digital Diagnostics AG, for use withinLifecare AS’ business area. For Lifecare AS’ shareholders the joint venture with IMS Capital Partners GmbHentails: • Lifecare AS’ costs to further develop Sencell is covered through DigitalDiagnostics AG, which is financed by IMS Capital Partners GmbH. • Therefore, there is no need for the planned capital increase in Lifecare AS inthe second half of 2020. • Through a 25% ownership in Digital Diagnostics AG, Lifecare AS’ shareholderswill have the opportunity to be part of the further value creation in Digital Diagnostics AG.• Lifecare AS’ business continues as planned, with significantly reduced costs.• The shareholder composition in Lifecare AS will not change as a result of theagreement. IMS Capital Partners GmbH will not get ownership in Lifecare AS.