Arctic Bioscience - Entering micro algae space

13 Feb 2023 12:53 CET

Arctic Bioscience, a biotech company developing and commercializing
pharmaceutical and nutraceutical products, today announces the acquisition of
Arctic Algae AS, a biotechnology company specializing in production of micro
algae by innovative reactor technologies.

«We are very happy to include the highly skilled employees of Arctic Algae to
our team. All our product development is based on unique competence on bioactive
marine compounds, and combining Arctic Algae's competence within bioreactor
technology, represents a major opportunity for Arctic Bioscience in continuing
designing and extracting marine membrane lipids for application in our
products», says CEO Christer Valderhaug in Arctic Bioscience.

The acquisition is based on an enterprise value of NOK 16,3 million, including a
net cash position of NOK 5,5 million. The transaction will be fully paid by
issuing shares in ABS to Ronja Capital II AS at an ABS share price of minimum
NOK 17,27 per share.

In addition to its pharmaceutical and nutraceutical products, Arctic Bioscience
is developing a pipeline of products within inflammatory indications. All based
on the Company's technology platform in marine membrane lipids. In addition to
current use of marine ingredients, Arctic Bioscience aims to enhance its product
- and technology platform by developing proprietary and scalable ingredients
based on marine micro algae.

"Through its innovative work, Arctic Algae has developed new production methods
for micro algae. The technology is fully scalable and will be the foundation for
Arctic Bioscience to expand its product portfolio into marine algal oils,
products that have a high growth rate in the nutraceutical marketplace. We will
continue this development and strengthen our IP position significantly covering
claims comprising both composition of matter and methods of use", says
Valderhaug.

Arctic Algae is located in Larsnes, Norway with abundant access to fresh and
clean water from the North Atlantic Ocean with deepwater intake. The company has
all the infrastructure needed for both heterotrophic and phototrophic production
of micro algae, which is the basis for valuable marine oils, proteins, and other
promising ingredients.

"Micro algae is truly an exciting area in the field of bioscience, where major
milestones have been made over the past few years. By choosing specific algae
strains and producing them under certain conditions, unique marine ingredients
could be created. This could then form as a basis for both nutra and pharma
products. Arctic Algae's innovative production process combined with Arctic
Bioscience's extraction technology and market acess is a perfect mach", says
Chairman in Arctic Algae, Tore Tønseth.

Arctic Algae is owned by Ronja Capital II AS, a major shareholder in Arctic
Bioscience. The agreement is in accordance with prevailing legislations for
related party transactions. A third party fairness opinion has been conducted by
Converto AS.

For further information, please contact:

Christer L. Valderhaug
CEO of Arctic Bioscience AS
Mobile: +47 920 84 601
Email: christer@arctic-bioscience.com

Tore Tønseth
Investment Director of Ronja Capital II AS and Chairman in Arctic Algae AS

Mobile: +47 958 06 277
Email: tore@ronjacapital.no

About Arctic Bioscience

Arctic Bioscience is a biotech company developing and commercializing
pharmaceutical and nutraceutical products based on unique bioactive marine
compounds.

The company is developing HRO350 - a novel oral drug candidate. HRO350 is being
developed for treatment of patients with mild-to-moderate psoriasis. This is a
large patient group in need of new effective medicines with beneficial safety
profile.

Nutraceuticals from Arctic Bioscience are sold globally as bulk ingredients as
well as finished goods under the ROMEGA® brand.

Arctic Bioscience is led by a team of highly competent people with experience in
developing marine oils and experience from global pharmaceutical companies.

About Arctic Algae

Arctic Algae AS is a biotechnology company producing micro algae by innovative
reactor technologies. The company has developed new production methods for micro
algae and identified several strains with large commercial potential. The
company is located in Larsnes, Norway with abundant access to fresh and clean
water from the North Atlantic Ocean. Arctic Algae has all the infrastructure
needed for both heterotrophic and phototrophic production of micro algae, which
is the basis for valuable marine oils, proteins, and other promising
ingredients. The company was established in 2020 and is owned 100% by Ronja
Capital II AS, a Norwegian family office with focus on the marine sector.

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

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