Update on MMI and Further Investment

Crystal Amber Fund doubles down on MMI, but commercial returns remain years away.

Risk flags

• ●There is no disclosure of commercial revenues, profitability, or cash flows, making it impossible to assess whether the business is financially viable or progressing toward self-sustainability. This matters because continued capital deployment without revenue generation increases the risk of further dilution or funding shortfalls.
• ●The timeline to value realisation is long, with pivotal US clinical trial enrolment not expected to complete until early 2028 and FDA approval projected for 2028 or 2029. This exposes investors to multi-year regulatory and execution risk, during which market conditions or competitive dynamics could change.
• ●The announcement references ongoing discussions with prospective strategic and financial investors, but provides no details, binding agreements, or evidence of imminent funding. This introduces uncertainty as to whether the company can secure the additional capital required to reach commercialisation.
• ●Claims of 'the world's first' device and 'continued clinical, regulatory and commercial progress' are not substantiated by operational or comparative data. Overstated language without supporting evidence can signal a gap between narrative and reality, raising concerns about transparency and credibility.

Bottom line

Crystal Amber Fund’s latest US$8.2 million investment in MMI signals strong internal conviction, but the absence of any revenue or profitability data means there is no evidence of commercial traction. The Reset® device has achieved some regulatory and clinical milestones, but all meaningful value realisation depends on successful completion of a pivotal US clinical trial and subsequent FDA approval, both of which are years away. Ongoing funding needs and the lack of binding third-party investment commitments add further uncertainty. The company’s narrative is optimistic and forward-looking, but the data only supports capital deployment and regulatory steps, not financial progress. For investors, this announcement is not actionable in the near term and does not change the risk/reward profile: the single most important takeaway is that this remains a high-risk, long-duration bet with no current financial visibility.

Announcement summary

Crystal Amber Fund Limited has invested a further US$8.2 million in Morphic Medical Inc. ("MMI"), equivalent to approximately £6.1 million at current exchange rates, with the most recent investment made on 31 July 2026. The investment was made in three tranches, each at a price of US$0.48 per share, and brings the Fund's aggregate holding to 435,992,719 preferred and common shares in MMI, representing approximately 97.9% of MMI's aggregate preferred and common issued share capital. MMI owns Reset®, the world's first medical device focused on treating the root cause of obesity and type 2 diabetes, and has completed procedures in the UK, Germany and India, with distribution agreements covering Belgium, the Netherlands, the Czech Republic, Turkey, the Dominican Republic, Colombia, the Canary Islands and the Middle East. Patient enrolment in the US FDA study for Reset® is currently expected to complete by early 2028, with FDA approval for Reset® expected in 2028 or 2029. The FDA has agreed that the number of participating clinical sites may be increased from 20 to 40, and the previously required pause after the first 67 patients has been removed. Reset® was awarded NUB status in Germany, enabling hospitals to apply for supplementary reimbursement, and the first procedures in Germany took place in June 2026. MMI is currently in discussions with prospective strategic and financial investors, including large multinational medical device companies, in relation to further funding.

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