Hofseth Biocare ASA: Third Quarter 2019 Financial Report

Hofseth BioCare had operating revenues of NOK 29.2m (16.9m) in the third quarter of 2019.

Cost of Goods Sold (CoGS) amounted to NOK 25.3m (14.3m) in the period. Operational profit (EBITDA) for the third quarter 2019 was negative NOK 7.6m (14.7m).

Cash and cash equivalents increased by NOK 89.5m during the quarter, leaving total holding of cash and cash equivalents at NOK 109.4m by the end of the period.

In the third quarter of 2019, the Midsund plant processed 2,613 tons of salmon and trout raw materials. Production was 4.8 % higher than the corresponding quarter 2018. The Berkåk plant produced 281 tons of finished protein products in the third quarter 2019, including the capacity lease manufactured products.

In the quarter, HBC R&D has focused on driving new biotech investigations forward for several indications within all three product fractions; Oil, Protein Hydrolysate and Bone Powder while still playing our role in process development research. We have continued our efforts in in-vitro experiment design and construction towards our other clinical treatment leads in: treating age-related Sarcopenia; pre-diabetic co-treatment; and retarding osteoporosis.

HIGHLIGHTS IN THE THIRD QUARTER 2019
- In July, HBC raised approximately NOK 118 million in gross proceeds through a Private Placement and approx. NOK 6 million in the following subsequent offering in Q4 at a fixed price per share of NOK 4. The participants in the Private Placement were private and institutional investors from the US, UK and Europe.
- In September, key management agreed to buy 11m shares in HBC from Hofseth International AS, trough Brilliant Invest AS
- A new sales person has been hired in Singapore with the increased focus on the Asian market, as well as a new sales partner in Denmark/Germany.

Please find the Third Quarter 2019 Financial Report attached.

For further information, please contact:
James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachment

• HBC Q3 2019 Financial Report