Hofseth Biocare ASA

CONTEMPLATED PRIVATE PLACEMENT – INTENDED TRANSFER OF LISTING TO OSLO BØRS

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE SECURITIES DESCRIBED HEREIN.

(Ålesund, 15 October 2020) Hofseth Biocare ASA ("HBC" or the "Company") has engaged Pareto Securities AS (the "Manager") to advise on and effect a contemplated private placement of new shares, after the close of trading on Oslo Axess today (the "Private Placement").

The Private Placement is directed towards Norwegian and international investors, subject to applicable exemptions from relevant registration, filing and prospectus requirements, and subject to other applicable selling restrictions. The minimum application and allocation amount have been set to the NOK equivalent of EUR 100,000. The Company may however, at its sole discretion, allocate amounts below EUR 100,000 to the extent exemptions from the prospectus requirement in accordance with applicable regulations, including the Norwegian Securities Trading Act and ancillary regulations, are available.

Through the Private Placement, the Company is offering new shares (the "Offer Shares") in the Company to raise gross proceeds of up to NOK 200 million. The total size of the Private Placement, the subscription price and allocation of shares in the Private Placement will be determined by the Company's board of directors following an accelerated bookbuilding process. The bookbuilding period commences today at 16:30 CEST and will close at 08:00 CEST tomorrow, 16 October 2020. The bookbuilding may, at the discretion of the Company and the Manager, close earlier or later and may be cancelled at any time and consequently, the Company may refrain completing the Private Placement. The Company will announce the final number of Offer Shares placed and the final subscription price in the Private placement in a stock exchange announcement expected to be published before the opening of the Oslo Axess tomorrow, 16 October 2020. Completion of the Private Placement is subject to final approval by the Company's Board of Directors.