The strategy of Hofseth BioCare ASA (“HBC”) is to develop and sell unique bioactive ingredients from salmon for human and pet nutrition. High production volumes result in large volumes sold to the feed industry, but recent production process updates and increased market activities has led to higher sales volumes to human and pet nutrition.

Human Nutrition

Reference is made to the stock exchange notice on 10 December 2018 about the recent study on Hofseth BioCare’s calcium product CalGo®. The study showed that consuming small fish bones in the diet improves bone and joint health and that natural fish bone supplements, such as CalGo® (salmon bone collagen calcium), may serve as a superior, bioavailable calcium supplement as compared to other mono-component organic or inorganic calcium supplement powders.

Hofseth BioCare ASA produces CalGo®, a microcrystalline hydroxyapatite form of calcium, which is a highly bioavailable calcium supplement with more than 24 % fish bone collagen. Calcium is an essential mineral that supports bone and joint health. It is used as a supplement, most typically as calcium carbonate, to assist in preserving bone density especially when dietary calcium intake is inadequate. In the present study we examined the effect of five varied calcium sources, three natural and two synthetic, on stimulation, proliferation and mineralization of cultured human osteoblast cells.

During the second half of 2018, HBC has invested approx. NOK 10 million in a new calcium production line at Midsund. The new production line was up and running in Q4 2018 and have met the stringent and desired quality and yield measures. After HBC introduced the new, improved CalGo® ingredient to the market late 2018, several customers have been exploring opportunities for the ingredient in the existing human nutrition and calcium market place.

Based on the unique qualities of CalGo®, combined with the recent study, HBC has received its first significant CalGo® contract for human nutrition and the ingredient will be used for finished products in Eastern Europe. The finished calcium tablets will be produced in Norway and first delivery starts in April 2019.

Simultaneously, Nøre Nutrition (a fully-owned sales company of HBC) is increasing its marketing efforts into direct B2C sales and social media marketing. The first product, "Marint Kalsium" was launched earlier in Q1 2019.

Pet Nutrition

Since the fourth quarter of 2016, HBC has been focusing on making finished salmon oil products for pets and on 31 October 2016, HBC entered into a distribution agreement with Morene Produkter for sales and distribution in Norway.

Brilliant™ Salmon Oil for Pets was first introduced to the European market at the Zoomark show in Bologna, Italy in May 2017 and after a successful marketing campaign on social media over the last year, Brilliant™ Salmon Oil is now being distributed to several European and Asian customers. Sales volumes have been increasing throughout 2018, and the order volumes as of today in 2019 have doubled the total sales in 2018. The single largest order of Brilliant™ Salmon Oil was received yesterday and the bottles will be shipped to the customer in Shanghai in April. The total volume of Brilliant™ sold in 2019 has now surpassed the total volumes sold from launch in 2016 to end of 2018.

Higher volumes are now sold to pet and human nutrition which increase the average price on HBC’s salmon oil. The market activities to sell larger volumes into these market segments will continue and HBC will also this year attend the Zoomark show in May to sign on more distributors in Europe.

For further information, please contact:
Roger Hofseth, CEO of Hofseth BioCare ASA
Mob: +47 95147941
E-mail: rh@hofseth-as.no

Kai Morten Thuen, Marketing Manager of Hofseth BioCare ASA
Mob: +47 91638401
E-mail: kmt@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.

Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare 

About Nøre Nutrition AS:

Nøre is a fully owned B2C sales and marketing company of Hofseth BioCare ASA. The company's strategy is to deliver quality of life to its customers by using HBC ingredients, and developing new exiting and valuable product for its customers. Nøre Nutrition's headquarter is in Ålesund, Norway. More information at https://www.facebook.com/norenutrition/ and http://nore-nutrition.no/

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