Hofseth Biocare ASA: First Quarter 2020 Financial Report

HBC had operating revenues of NOK 18.5m (NOK 14.7m) in the first quarter of 2020. Cost of Goods Sold (CoGS) amounted to NOK 6.2m (NOK 10.9m) in the period. Operational profit (EBITDA) for the first quarter 2020 was negative NOK 10.2m (negative NOK 12.9m). Net financial items in the first quarter were negative NOK 1.9m (negative NOK 1.3m). Loss before tax was NOK 17.9m in the quarter, compared to a loss of NOK 20.6m during first quarter 2019.

Cash and cash equivalents decreased by NOK 27.1m during the quarter, leaving total holding of cash and cash equivalents at NOK 67.5m by the end of the period.

Total assets for HBC were NOK 293.7m at the end of first quarter of 2020 (NOK 245.1m). Deferred tax assets are not posted in the balance sheet. Estimated value is NOK 147.6m. Total equity amounted to NOK 122.8m (NOK 66.8m) corresponding to an equity ratio of 41.8 % (27.3 %) for the group.

HIGHLIGHTS IN THE FIRST QUARTER 2020

• In January, HBC signed a new credit facility of up to NOK 37m for working capital needs related to future sales contracts.
• In March, HBC signed a comprehensive distribution contract with Prinova Europe. The agreement is a European exclusive distribution contract for branded marine products.
• On March 23rd HBC completed a private placement towards Chief Science Officer Dr. Bomi Framroze, through issuance of 3,253,370 new shares and Dr. Framroze now holds a total of 5 million shares in HBC.
• Preclinical research with OmeGo® demonstrates potential to target eosinophil-driven illnesses including steroid-resistant asthma.

Please find the First Quarter 2020 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-IBD 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 of the Norwegian Securities Trading Act

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