Arctic Bioscience - Joint Venture with Kotler to develop China and other SE Asian markets

21 Jan 2025 11:25 CET

The sale of ROMEGA®? products in the Chinese market has grown fast the last 3
years and we see significant growth potential. To accelerate the positive
business development, Arctic Bioscience and Kotler Investment Ltd. have signed a
term sheet to establish a joint venture operation to commonly develop the
Chinese and Southeast Asian markets together to truly realize the business
potential.

China is the 3[rd] largest regional Omega-3 market in the world after USA and
Europe with a market size of more than USD 10 billion (finished products), where
dietary supplements alone is about 10%.

The key terms of the term sheet

· Arctic Bioscience to become minority owner in the China and Southeast Asia
sales operation
· Attract growth capital and business partners in Asia to extend the
distribution of ROMEGA®? products in the region
· Strengthen the ROMEGA®?brand in China and Southeast Asia
· Gather all the specific IP for China and Southeast Asian markets under the
Joint Venture

"Establishing a joint venture with Kotler to further scale the Chinese market
and entering Southeast Asian markets, is a natural next step in the
strengthening of our partnership with the Kotler Marketing Group. Kotler
Marketing Group is focusing exclusively on Arctic Bioscience products such as
ROMEGA®? Pregnant women, ROMEGA®? Eye health and ROMEGA®? Brain. Their approach
in China has already proven successful with sales approaching NOK 100 million of
finished products in the Chinese market and forecasted to grow strongly in 2025
and onward. By enhancing their business platform further, we see enormous
opportunities for our products in China and Southeast Asia", says CEO Christer
L. Valderhaug.

Arctic Bioscience delivered a strong close to 30% y/y growth in sales revenues
overall in 2024 and see positive prospects of continued strong growth in 2025
and onward. The recently announced financing solution of NOK 30 million is
estimated to bring the Company into a positive cash flow position in 2026.

For further information, please contact:

Christer L. Valderhaug

CEO

Mobile: +47 920 84 601

Email: christer@arctic-bioscience.com

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 highly skilled team of talents with diverse and
highly relevant background.

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