28.6.2022 15:33:16 CEST | Aqua Bio Technology ASA | Inside information

Aqua Bio Technology ("ABT or the "Company") has today, on 28 June, entered into
a binding term sheet (the "Term Sheet") with Varming Holding AS ("Varming")
regarding the Company's acquisition of all shares in the Norwegian company
Cosmed Beauty AS and the Swedish company Ultrabody AB both of which are wholly
owned subsidiaries of Varming (collectively "Cosmed"). The purchase price will
be based on a earn-out based on a multiple of Cosmed's result before tax for
each of the financial year 2022, 2023, 2024 and 2025. The majority of the
purchase price (appr. 3/4) will be used to subscribe for new shares in ABT at a
subscription price of NOK 8,20 following Cosmed's adoption of its annual
accounts for 2022-2025. The transaction will be completed following a
satisfactory due diligence and ABT's board approval. The Parties shall finalize
a share purchase agreement within 31 July 2022.

Background for the acquisition of Cosmed: with this agreement, ABT and Cosmed
secures the entire value chain from production to end user. ABT also secures
distribution for Seidr, Seidr Clinique, Moana Skincare, B Natural and future
products. Further in collaboration with Cosmed, new skincare products based on
ingredients from Hofseth Biocare ASA (HBC - https://hofsethbiocare.com/) are
planned for launch in the Nordics. HBC has a number of well-documented quality
ingredients that, among other things, will have a good effect on acne, anti age
and preservation of skin moisture.

The skincare distribution specialist Cosmed - https://www.cosmedbeautyshop.no/ 
has its own retail store in Lillestrøm and have access to between 800-900 salons
and spas to which they distribute various products in Norway. For the financial
year of 2022, Cosmed is expecting a significant growth from its 2021 turnover of
approx. 10 MNOK. The turnover in their online store as of May 2022 is already
higher than in 2021 FY.

Cosmed has since October 2020 collaborated with Equal Agency -
https://www.equalagency.no/ for social media marketing in Norway and is also
collaborating with many ambassadors and influencers, achieving good results with
marketing made by influencers. Cosmed has recently also started with two new
profiles that have a more adult following group (Aurora Hoff and Motesilje).
Cosmed is expecting to duplicate their Norwegian business strategy in Sweden and
has engaged Metapic - https://metapic.com/en for this work. The processes into
the Swedish market has already started and Cosmed expects to have more
collaborations in place from end of July.

This information was considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. The stock exchange
announcement was published by Håvard Lindstrøm, CEO, on 28 June 2022 at 15:32
CEST.

 

 

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 -
https://kommunikasjon.ntb.no/ir-files/17847556/1576/2146/Download%20announcement
%20as%20PDF.pdf