Hofseth BioCare ASA: Contemplated Private Placement and Partial Divestment of Shares in Aecorbio

Core Viewpoint - Hofseth BioCare ASA ("HBC") is planning a private placement of new shares to raise between approximately NOK 155 million and NOK 181 million, aimed at capitalizing on the growing demand for salmon-derived nutrition and expanding its market presence [2][3]. Group 1: Private Placement Details - The private placement will consist of between 86,096,132 and 100,638,889 new shares at a fixed price of NOK 1.80 per share [2]. - Pre-commitments totaling approximately NOK 155 million have already been secured, with NOK 103.4 million in cash and NOK 52 million from debt conversion [2][7]. - The placement will be divided into two tranches, with Tranche 1 consisting of up to 68,555,556 shares and Tranche 2 up to 32,083,333 shares [8]. Group 2: Strategic Use of Proceeds - Proceeds will be allocated to expand the B2B ingredients unit and enhance customer adoption of nutraceutical offerings, particularly in high-growth regions like Asia and the US [3]. - Funds will support initiatives in metabolic health and healthy aging, following recent product successes and increased market interest [4]. - Investment will also focus on scaling the Brilliant Petcare brand, which is experiencing global growth in the premium pet nutrition segment [4]. Group 3: Partnerships and R&D - HBC aims to develop new concepts with global distributor partners and strengthen alliances with contract manufacturers, alongside general corporate purposes and marketing activities [5]. - The company will also allocate funds for further research and development to support its innovation pipeline [5]. Group 4: Divestment and Shareholding - In conjunction with the private placement, HBC will divest shares in AecorBio Inc. for approximately USD 5 million, reflecting a 20% valuation increase from the last funding round [6]. - Post-divestment, HBC will retain approximately 52% ownership in AecorBio [6]. Group 5: Regulatory and Application Process - The application period for the private placement starts on October 24, 2025, and is expected to close by October 27, 2025 [11]. - The completion of the private placement is subject to various conditions, including board resolutions and registration of share capital increases [12][13]. - An extraordinary general meeting (EGM) is expected to be convened around November 20, 2025, to approve the issuance of shares in Tranche 2 [15].