Hofseth Biocare ASA

PRIVATE PLACEMENT SUCCESSFULLY PLACED

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR ANOTHER 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, 16 October 2020) Reference is made to the stock exchange release from Hofseth Biocare ASA ("HBC" or the "Company") published on 15 October 2020 regarding a contemplated private placement.

The Company hereby announces that it has allocated 24,691,358 new shares in the Company (the "Offer Shares") in a private placement (the "Private Placement") at a subscription price of NOK 8.10 per share, corresponding to a total size of the Private Placement of NOK 200 million. The Private Placement was significantly oversubscribed.

Pareto Securities acted as sole manager in connection with the Private Placement.

The net proceeds of the Private Placement will be used for R&D activities, expanding production capacity, ramping up sales and marketing, as well as for general corporate purposes.

Notification of allotment of the Offer Shares including settlement instructions will be sent to the applicants through a notification from the Manager on or about 16 October 2020. The Offer Shares will be settled through a delivery versus payment transaction on or about 20 October 2020 with existing and unencumbered shares in the Company that are already admitted to trading on Oslo Axess, pursuant to a share lending agreement between the Company, the Manager, Hofseth International AS, Hofseth AS and Seafood Farmers of Norway AS. The Offer Shares will be tradable from allocation, i.e. from 16 October 2020.

In order to settle the share loan, the Company's Board of Directors has resolved to issue 24,691,358 new shares in the Company to the Manager pursuant to the authorization granted by the Company's annual general meeting on 25 May 2020. Consequently, the share capital of the Company will be increased with NOK 246,913.58 from NOK 3,302,090.01 to NOK 3,549,003.59. Following registration of the new share capital pertaining to the Private Placement, the Company will have 354,900,359 shares outstanding, each with a par value of NOK 0.01.