12.4.2024 09:05:41 CEST | Aqua Bio Technology ASA | Inside information

Reference is made to Aqua Bio Technology ASA's ("ABT" or the "Company") stock exchange announcement made 8 February 2024 concerning the Company's intended acquisition of Ovalen AS ("Ovalen") (the "Acquisition"). The Acquisition was subject to a successful due diligence which was completed to ABT's satisfaction and ABT's board of directors has approved the transaction which will be completed on the terms initially agreed. Ovalen had operating revenues of NOK 17 million with an EBITA of NOK 1.1 million in 2023.

The purchase price ranges from NOK 6 million to NOK 11 million, where NOK 5 million is contingent upon future revenue and EBIT performance of the Company in 2024 and 2025. NOK 6 million of the purchase price will be settled through the issuance of 1,200,000 consideration shares (the "Consideration Shares") at a subscription price of NOK 5 per Consideration Share.

The sellers of Ovalen, including its ultimate beneficial owners, have agreed to a three-year lock-up on the Consideration Shares which will be formally issued by ABT as soon as possible.

Ovalen owns Cover Brands AS' ("Coverbrands") store "Pusterom Hudpleie" which is a physical store and beauty salon, that has received significant recognition in Kristiansand within a short period of time. More information about "Pusterom Hudpleie" is available at coverbrandsstore.no and pusteromhudpleie.no. ABT contemplates to establish similar stores in major cities in Norway.

Synergies

It is expected that the Acquisition will generate significant synergies for ABT, especially benefitting our wholly owned subsidiary Coverbrands, leading to enhanced brand building and revenue growth, more advantageous supplier agreements and strengthened ability to successfully develop proprietary products.

Coverbrands chairman Kristian Fiala comments:

The establishment of physical stores in Norway's major cities will bolster Coverbrands' online store and its ability to successfully access the event market. Our skilled store personnel will deliver considerable value at major events such as Palmesus in Kristiansand, where our brand already is well-established, and the Foma festival in Oslo, where we are proud sponsors. Coverbrands is currently forging a strategic cooperation with a leading events industry entity, within which the physical stores are expected to play an instrumental role.

Rapid Strategic Scaling

Ovalen is on track with is plan to open a new store in Oslo and then aims to quickly progress with the launch of new locations in other major cities. Upon an expansion beyond Norway's borders, Ovalen's concept is expected to play a pivotal role in the market penetration, customer loyalty, and ongoing brand enhancement.

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Aqua Bio Technology (ABT) is developing and commercializing sustainable biotechnology for use in skin care products. ABT's cosmetics ingredients are highly effective and they provide the cosmetics industry with natural alternatives to traditional ingredients. ABT is also marketing and distributing natural skin care products developed by partners towards consumers and professional users. Aqua Bio Technology is listed on Euronext Expand.

This information was considered to be inside information pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock exchange notice was published by Håvard Lindstrøm, CEO, on the date and time provided.

Disclosure regulation

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

Contacts

• Håvard Lindstrøm, 004794132288, hl@aquabiotech.no

About Aqua Bio Technology ASA

Aqua Bio Technology (ABT) is developing and commercializing sustainable
biotechnology for use in skin care products. ABT's cosmetics ingredients are
highly effective and they provide the cosmetics industry with natural
alternatives to traditional ingredients. ABT is also marketing and distributing
natural skin care products developed by partners towards consumers and
professional users. Aqua Bio Technology is listed on Euronext Expand.

Attachments

• Download announcement as PDF.pdf