Aqua Bio Technology — M&A Activity 2022

Jun 28, 2022

Aqua Bio Technology ASA - ABT agrees to acquire Cosmed Beauty AS and Ultrabody AB

Aqua Bio Technology ASA - ABT agrees to acquire Cosmed Beauty AS and Ultrabody AB

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