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, 3 July 2022) Reference is made to the stock exchange release from Hofseth Biocare ASA ("HBC" or the "Company") published on 1 July 2022 regarding a contemplated private placement.

The Company hereby announces that it has allocated 35,490,000 new shares in the Company (the "Offer Shares") in a private placement (the "Private Placement") at a subscription price of NOK 4.00 per Offer Share (the "Offer Price"), thereby raising gross proceeds of approximately NOK 141 million. The Private Placement was oversubscribed on the time of completion.

The net proceeds of the Private Placement will be used for general corporate purposes. The Company is also in the process of securing more fresh salmon raw material off-cuts from nearby external sources to enable the factory at Midsund to operate above 80% capacity utilization at all times. The increase in demand for HBC’s human grade ingredients made from salmon by-products over the past 12 months has increased meaningfully from both the Petcare and nutraceutical channels. There is now a strong pipeline building for which more consistent raw materials input is required.

Notification of allotment of the Offer Shares including settlement instructions will be sent to the applicants through a notification from the Company on or about 4 July 2022. The Offer Shares will be settled towards the investors in the Private Placement as soon as practicable after full payment has been received and the share capital increase pertaining to the Private Placement has been registered in the Norwegian Register of Business Enterprises. The Offer Shares allocated in the Private Placement will be settled partially through cash payment and partially through conversion of debt and outstanding trade credits (a total of NOK 71,200,760).

In order to increase the share capital pertaining to the Private Placement, the Company's board of directors has resolved to issue 35,490,000 new shares in the Company pursuant to the authorization granted by the Company's annual general meeting on 29 April 2022. As disclosed in the stock exchange notice from 1 July 2022, the share capital increase pertaining to the Private Placement has been divided into two separate resolutions, pursuant to which Aqua-Spark will pay for shares allocated to it within 24 July 2022. Consequently, the share capital of the Company will be increased with NOK 354,900. Following registration of the two resolutions to increase the share capital, the Company will have 393,321,030 shares outstanding, each with a par value of NOK 0.01.