AKVA Group — Capital/Financing Update 2021

Sep 29, 2021

AKVA group ASA: New strategic investor and targeted cooperation within land-based farming

AKVA group ASA: New strategic investor and targeted cooperation within land-based farming

Israel Corp., a listed Israeli investment company that owns and invests in high

quality companies with established managements and go-to markets, will take an

appr. 15% stake in AKVA group ASA ("AKVA"), and partner with AKVA in attracting

investments for land-based projects based on AKVA solutions and technology.

Egersund Group AS will still hold the majority ownership in AKVA.

AKVA has today entered into an agreement with Israel Corp. (TASE: ILCO) that

will result in Israel Corp. taking a 15% ownership stake in AKVA. The investment

will be completed through (i) a private placement of 3,333,430 newly issued

shares (corresponding to appr. 10% of the current outstanding shares in AKVA) at

a subscription price of NOK 96.50 per share and an aggregate amount of NOK

321.7 million, and (ii) purchases of minimum 2,166,730 shares from existing

shareholders in AKVA at a purchase price of NOK 96.50 per share and a total

aggregate purchase amount of up to NOK 209.1 million (assuming 2,166,730

shares).

As part of the transaction, Israel Corp. will become entitled to appoint one

board member in AKVA as long as it holds minimum 12% ownership position in the

company. In addition, for a period of 24 months following the closing of the

investment and as long as ILCO holds at least 12% of AKVA's shares, ILCO shall

be entitled to participate in any capital raising in such a manner that ILCO's

holdings in AKVA's share capital shall be retained (pre-emptive rights).

AKVA and Israel Corp. have furthermore agreed to work towards establishing an

investment platform for investments in land-based aquaculture facilities

worldwide, using AKVA technology and solutions. The parties expect to contribute

USD 10 million each to the platform or to land-based aquaculture projects

worldwide, with the goal of raising further commitments from co-investors and

partners to reach a total of up to USD 100 million.

Knut Nesse, CEO AKVA comments: "We are very pleased to welcome Israel Corp. as a

long-term, strategic shareholder in AKVA. We believe that Israel Corp.'s global

business experience and technology background will contribute to our goal to

build a world-leading offering of technical & digital solutions within sea and

land-based aquaculture. "This transaction will enable AKVA to accelerate the

execution of our current strategy, to significantly step up our innovation

agenda, and to transform our land-based strategy".

Yoav Doppelt, CEO Israel Corp. comments: "We look forward to working with AKVA

to accelerate growth in sustainable food production and further develop AKVA's

technological leadership within the aquaculture industry. Our discussions with

AKVA convinced us that AKVA is a leading global player in the aquaculture

industry, and best positioned to capture the global land-based opportunity".

To complete the transaction as outlined above, Israel Corp. has today launched

an offer through its financial adviser DNB Markets directed to all AKVA

shareholders to in aggregate purchase minimum 2,166,730 existing shares in AKVA

at a price of NOK 96.50 per share. The maximum number of shares acquired by

Israel Corp. will be determined by Israel Corp. at its sole discretion following

expiry of the offer period, provided however that Israel Corp.'s aggregate

holding of shares in AKVA upon completion of the offer and the private placement

of new shares shall not exceed 19.99%. AKVAs' main shareholder Egersund Group AS

has committed to participate in the offer on a pro rata basis and has also

agreed with Israel Corp. that it will provide a back-stop facility of up to

2,166,730 shares to enable Israel Corp. to reach a minimum holding of 15% on a

fully diluted basis. Further information about the offer terms and settlement of

the offer will be posted on www.dnb.no/emisjoner (http://www.dnb.no/emisjoner)

and on AKVA's website.

The shareholders in AKVA are invited to attend an Extraordinary General

Meeting to approve the issue of new shares to Israel Corp. and other matters

necessary to complete the transaction to be held at 17:00 hours (CEST) on 20

October 2021 at Svanavågveien 30, Egersund, Norway. Please find enclosed the

Notice of the Extraordinary General Meeting, including a detailed agenda,

attendance form and proxy form.

Dated: 29 September 2021

AKVA group ASA

Web: www.akvagroup.com

CONTACTS:

Knut Nesse - Chief Executive Officer

Phone: +47 51 77 85 00

Mobile: +47 91 37 62 20

E-mail: knesse@akvagroup.com

Ronny Meinkøhn - Chief Financial Officer

Phone: +47 51 77 85 00

Mobile: +47 98 20 67 76

E-mail: rmeinkohn@akvagroup.com

***

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements according

to section 5-12 of the Norwegian Securities Trading Act. The information was

submitted for publication by Ronny Meinkohn (CFO) (contact details as set out

above) on 29 September 2021 at 07:30 CET.

About AKVA group ASA

AKVA group ASA is a global technology and service partner that deliver

technology and services  that  helps  solve  biological  challenges within the

aquaculture industry.  Good operational performance and fish welfare ensures

sustainability and profitability for the customer.  This is the premise for

everything we deliver, from single components to services and complete

installations. In-depth aquaculture knowledge, extensive experience and a high

capacity for innovation characterizes and enables us to deliver the best

solutions for both land-based and sea based fish farming.