Hofseth Biocare ASA: Second Quarter 2019 Financial Report

Hofseth BioCare had operating revenues of NOK 12.8m (14.6m) in the second quarter of 2019.

Cost of Goods Sold (CoGS) amounted to NOK 6.8m (11.8m) in the period. Operational profit (EBITDA) for the second quarter 2019 was negative NOK 8.4m (12.9m).

Cash and cash equivalents decreased by NOK 16.6m during the quarter, leaving total holding of cash and cash equivalents at NOK 19.9m by the end of the period.

In the second quarter 2019, HBC Midsund processed 3,061 tons of salmon and trout raw materials, which is 91 tons less than previous quarter. However, we processed 487 tons more than the same quarter previous year (an increase of 18,9%).

Raw material availability from our core suppliers is good and increasing. We expect the processed raw material to continue increasing during 2019.

In the second quarter, we tested ProGo® powder given orally to GI damaged mice that mimic necrotising enterocolitis (NEC) in Stanford University specially developed mouse model. The results were positive and very encouraging. The Stanford University is now running a formal statistically powered, POC preclinical trial.


- The single largest order of Brilliant® Salmon Oil was received in April 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.

- In June, HBC entered into a Letter of Intent with Florida-based and Nestlé-owned Garden of Life® for sales of HBC products in the USA. The LOI states that as soon as the final organoleptic tests are done, the parties envisage entering into a long-term agreement to develop a close collaboration on developing the world market for HBC's products.

- Positive and very encouraging tests have been done at Stanford University School of Medicine on ProGo® powder given orally to GI damaged mice that mimic necrotizing enterocolitis (NEC) to show that ProGo® powder was able to protect human gastrointestinal cells from oxidative damage. The Stanford lab is now running a formal statistically powered, POC preclinical trial and successful results will lead to a significant publication and breakthrough on our path towards an adjuvant treatment for GI protection in inflammatory diseases, starting with NEC.

Please find the Second Quarter 2019 Financial Report attached.

For further information, please contact:

Roger Hofseth, CEO of Hofseth BioCare ASA
Mob: +47 95147941
E-mail: rh@hofseth-as.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 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

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


HBC Q2 2019 Financial Report