Update on MMI and Further Investment

Crystal Amber Fund Limited

("Crystal Amber Fund", the "Fund" or the "Company")

Update on MMI and Further Investment

The Board of Crystal Amber Fund Limited is pleased to announce a further investment in Morphic Medical Inc. ("MMI") and to provide an update on its continued clinical, regulatory and commercial progress.

Further investment and external funding update

Since 16 February 2026, the Company has invested a further US$8.2 million in MMI, equivalent to approximately £6.1 million at current exchange rates with the most recent investment being made on 31 July 2026. The investment comprised three tranches, each at a price of US$0.48 per share. The proceeds are principally being used to support the continued acceleration of MMI's pivotal US clinical study and the commercial development of its Reset® system.

Following these investments, the Fund holds an aggregate of 435,992,719 preferred and common shares in MMI, representing approximately 97.9% of MMI's aggregate preferred and common issued share capital.

MMI is currently in discussions with a number of prospective strategic and financial investors, including large multinational medical device companies, in relation to further funding.

While there can be no certainty that these discussions will result in an investment, the Board is encouraged by the level and quality of the interest received. The Fund will consider providing further funding alongside investors where the Board considers this appropriate and in the best interests of shareholders.

The Board continues to believe that the optimal time to seek to realise the Company's investment in MMI would be following FDA approval and access to the US market. The Fund therefore intends to continue actively managing and supporting its investment through this important stage of MMI's development.

Update on MMI

MMI owns Reset®, the world's first medical device focused on treating the root cause of obesity and type 2 diabetes.

Following receipt of the European CE mark and UK regulatory approval for the Reset® system, procedures have now been completed in the UK, Germany and India. MMI has also signed distribution agreements covering Belgium, the Netherlands, the Czech Republic, Turkey, the Dominican Republic, Colombia, the Canary Islands and the Middle East, providing a growing international platform for the commercialisation of Reset®.

While commercial revenues remain at an early stage and are not yet material, the growing number of procedures, reimbursement pathways and distribution agreements provides the foundation for future revenue growth.

Patient recruitment in the US FDA study for Reset® is accelerating. Under the previous study protocol, enrolment was expected to pause after the first 67 patients had completed Stage 1. This pause, which was expected to last approximately 12 months, would have allowed the FDA to review the Stage 1 data before MMI could recommence recruitment into the next stage of the study.

The FDA has now agreed that this pause is no longer required. MMI will therefore be able to continue recruiting patients immediately following completion of Stage 1, without having to suspend and subsequently restart the study. This removes a significant potential delay from the clinical programme, enables recruitment momentum to be maintained across participating sites and is expected to bring forward completion of the study.

The FDA has also agreed that the number of participating clinical sites may be increased from 20 to 40. MMI is progressing the onboarding of additional sites to take advantage of this expanded capacity and further accelerate patient recruitment.

Patient enrolment in the US study is currently expected to complete by early 2028, with FDA approval for Reset® expected in 2028 or 2029.

Commercial progress in Germany is also encouraging. Following an assessment by the German hospital and reimbursement system, Reset® was awarded NUB status, which provides a pathway for the reimbursement and pricing of innovative inpatient treatments and medical devices.

The award reflects the substantial and growing body of clinical evidence supporting the safety, efficacy and durability of Reset®, as well as its clinical relevance and therapeutic potential. NUB status enables hospitals in Germany to apply for supplementary reimbursement for the use of Reset® while broader reimbursement pathways continue to be evaluated in Germany and other markets.

Several hospitals have now completed their NUB reimbursement negotiations, and the first procedures in Germany took place in June 2026.

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