Second Quarter 2014 Financial Report

Hofseth BioCare had operating revenues of NOK 7,385 thousand (NOK 7,928) thousand) in the second quarter of 2014. Total operating expenses amounted to NOK 12,786 thousand in the period compared to NOK 18,630 thousand in the second quarter 2013.

Hofseth BioCare had operating revenues of NOK 7,385 thousand (NOK 7,928) thousand) in the second quarter of 2014. Total operating expenses amounted to NOK 12,786 thousand in the period compared to NOK 18,630 thousand in the second quarter 2013.
Operating profit (EBIT) for the second quarter 2014 was negative NOK 9,490 thousand (NOK minus 13,848 thousand). Depreciations amounted to NOK 4,089 thousand in the quarter. Ordinary depreciations for the corresponding period last year were NOK 3,146 thousand.
Net financial items in the second quarter were negative NOK 3,610 thousand (NOK minus 3,532 thousand). Results before tax ended at negative NOK 13,100 thousand in the period, compared to a loss of NOK 17,380 thousand during second quarter 2013.
Cash flow from operations during the second quarter was negative by NOK 58,824 thousand compared to negative NOK 14,536 thousand in the same quarter last year. Cash flow from the financing activities amounts to NOK 65,429 thousand in the second quarter of 2014, compared to NOK 23,283 thousand in the second quarter of 2013.
Total assets of the company at the end of the second quarter 2014 is NOK 226,612 thousand (NOK 197,634 thousand). Total equity amounted to NOK 118,841 thousand (NOK 69,704 thousand), giving an equity ratio of 52.4% (35.3%).

Highlights from the second quarter:
-HBC raised on April 11 NOK 90 million in gross proceeds through a private placement of 20 million new shares, each with a par value of NOK 1.00, at a subscription price of NOK 4.50 per share.
-On May 8th, HBC announced the receipt of its Notice of Allowance from the Japanese Patent office for its patent application "Compositions and Methods for Increasing Iron Absorption" which uses its salmon protein hydrolysate to alleviate anaemia in humans suffering from low iron absorption.
Please find the full report for the second quarter 2014 enclosed.

Second Quarter 2014 Financial update can be found here.

For further information please contact:
Jon Olav Ødegård, CEO Hofseth BioCare ASA
Tel +47 936 32 966
E-mail: joo@h-bc.no

Øystein Omvik, CFO Hofseth BioCare ASA
Tel: +47 936 99 400
E-mail: oystein.omvik@h-bc.no