During the second quarter, Hofseth BioCare entered into strategically important agreements in China and Japan, laying the foundation for strong growth. Also, new capital raised during the quarter gives the company the financial strength to pursue these opportunities.
Hofseth BioCare ASA had operating revenues of NOK 6.4 million in the second quarter of 2015, compared to 1.4 million in the second quarter of 2014. Operating profit (EBIT) was negative NOK 19.1 million, compared to negative 11.8 million in the same quarter last year.
Cash flow from operations was negative NOK 33.1 million, compared to negative 58.8 million in the corresponding quarter last year.
During the second quarter Hofseth BioCare entered into two key agreements. Firstly, in Japan a sales and distribution agreement was signed with Tokyo-based Alliance Seafood Ltd. Secondly, an agreement was signed to supply salmon oil capsules to Zhejiang Holley International Co., Ltd. of China.
"The new partnerships signed during the quarter are key to our growth plans. These companies have extensive experience, market knowhow and distribution reach within relevant segment of very large and rapidly growing markets. We see already a significant effect on revenues in the third quarter and expect that signed agreements will give positive results going forward," said Jon Olav Ødegård, CEO of Hofseth BioCare ASA.
In order to finance the company's expansion plans, Hofseth BioCare in June raised capital through a combination of a convertible bond loan and a private share placement. This successfully raised approximately NOK 105 million in proceeds.
Please see HBC's Q2 2015 report attached.
For further information, please contact:
Jon Olav Ødegård, CEO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: jon.olav.odegard@hofsethbiocare.no
Phone: +47 936 32 966
E-mail: jon.olav.odegard@hofsethbiocare.no
Øystein Omvik, CFO of Hofseth BioCare ASA
Phone: +47 936 99 400
E-mail: oystein.omvik@hofsethbiocare.no
Phone: +47 936 99 400
E-mail: oystein.omvik@hofsethbiocare.no
About Hofseth BioCare:
Hofseth BioCare 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, Hofseth BioCare is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. Hofseth BioCare`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.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
