Hofseth BioCare ASA ("HBC" or the "Company") has entered into an agreement for sale and lease of the Company's property at Midsund where the Company's production facilities are located. In addition, wholly owned subsidiary HBC Berkåk AS has also entered into an agreement for sale and lease of the property at Berkåk where the HBC group's spray drying facility is located.
Both agreements are entered into with Syvde Eiendom AS, a wholly owned subsidiary of major shareholder Alliance Seafoods Inc. The sale of the properties will provide the Company with additional working capital to be used in the ongoing commercialization of the Company's products, while the lease agreements secures the Company long-term access to well-suited factory premises.
The plants are sold for a joint consideration of NOK 80 million, of which NOK 51.5 million is payable for the Midsund plant and NOK 28.5 million is payable for the Berkåk plant. The sales are made as direct sales of the properties. The transactions are expected to be consummated on or about 25 March 2017, subject to approval of the Company's general meeting.
In connection with the consummation of the transactions, the Company shall enter into a 15-year lease agreement regarding the Midsund property with an annual lease sum of NOK 4,635,000 and HBC Berkåk shall enter into a lease agreement for the Berkåk property with the same term and with an annual lease sum of NOK 2,565,000.
- We are very pleased to have completed these two transactions with Syvde Eiendom AS. We see Alliance Seafoods as a strategically important partner, and through the agreements now in place with their fully owned subsidiary, our relationship will strengthen further, says CEO Tor Erik Andersen of Hofseth BioCare ASA.
As the agreement regarding sale and lease of the Midsund plant is entered into with a company controlled by shareholder Alliance Seafoods Inc., the agreement must be approved by the Company's general meeting. The Company therefore calls for a general meeting to be held on 24 March 2017 at 13.00 hours CET at the Company's premises at Molovegen 6, 6004 Ålesund. Please see the attached notice, which will also be sent to the shareholders per ordinary mail and be available at the Company's website www.hofsethbiocare.no.
Certain major shareholders, including Roger Hofseth and associated companies, Hofseth International AS and Hofseth International AS group of companies, Bonafide Global Fish Fund, and Deep Blue Ventures Fund, holding a total of 56.77% of the total outstanding shares and votes have made irrevocable commitments to vote in favour of the approval of these agreements. Including Alliance Seafoods Inc., who is a part of this transaction, the votes in favour of the transaction represent a total of 71.05% of the outstanding shares in Hofseth BioCare ASA.
The properties have not been subject to separate financial reporting. No agreements have been entered into that are for the benefit of members of the management or board of directors of the Company in connection with the abovementioned transactions.
This stock exchange notice is published in accordance with the requirements for detailed stock exchange announcements pursuant to section 3.4 of the Continuing Obligations for companies listed on Oslo Axess.
For further information, please contact:
Tor Erik Andersen, CEO of Hofseth BioCare ASA
Mob: +47 911 79 854
E-mail: tea@hofsethbiocare.no
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
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
About Alliance Seafoods Inc. and Syvde Eiendom AS:
Alliance Seafoods is a fully owned subsidiary of Yokohama Reito Co., Ltd ("Yokorei"), a Japanese conglomerate listed on the Tokyo Stock Exchange. Yokorei is a leading player in the frozen storage market in Japan. In addition, through Alliance Seafoods and other subsidiaries, Yokorei is involved in sales and distribution of fish and meat with a particular focus on the Asian market. Yokorei's consolidated turnover for 2015 was approximately USD 1.5 billion.
HBC and Alliance Seafoods have already had a business relationship for almost two years, and Alliance Seafoods is a key partner for HBC in the Asian market. In 2016, Yokorei also announced the acquisition of Fjordlaks Aqua, a leading trout farming company in Norway through a joint venture owned together with Hofseth International, which is a major shareholder of HBC.
Syvde Eiendom AS is a wholly owned subsidiary of Alliance Seafood Inc. with it's main business in ownership of processing and production facilities within the Hofseth International Group. Syvde Eiendom AS owns today three processing buildings in the Hofseth International Group.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
HBC Call for EGM 24MAR2017