Arctic Bioscience — Capital/Financing Update 2023

Feb 13, 2023

Arctic Bioscience - Entering micro algae space

Arctic Bioscience - Entering micro algae space

Arctic Bioscience, a biotech company developing and commercializing

pharmaceutical and nutraceutical products, today announces the acquisition of

Arctic Algae AS, a biotechnology company specializing in production of micro

algae by innovative reactor technologies.

«We are very happy to include the highly skilled employees of Arctic Algae to

our team. All our product development is based on unique competence on bioactive

marine compounds, and combining Arctic Algae's competence within bioreactor

technology, represents a major opportunity for Arctic Bioscience in continuing

designing and extracting marine membrane lipids for application in our

products», says CEO Christer Valderhaug in Arctic Bioscience.

The acquisition is based on an enterprise value of NOK 16,3 million, including a

net cash position of NOK 5,5 million. The transaction will be fully paid by

issuing shares in ABS to Ronja Capital II AS at an ABS share price of minimum

NOK 17,27 per share.

In addition to its pharmaceutical and nutraceutical products, Arctic Bioscience

is developing a pipeline of products within inflammatory indications. All based

on the Company's technology platform in marine membrane lipids. In addition to

current use of marine ingredients, Arctic Bioscience aims to enhance its product

- and technology platform by developing proprietary and scalable ingredients

based on marine micro algae.

"Through its innovative work, Arctic Algae has developed new production methods

for micro algae. The technology is fully scalable and will be the foundation for

Arctic Bioscience to expand its product portfolio into marine algal oils,

products that have a high growth rate in the nutraceutical marketplace. We will

continue this development and strengthen our IP position significantly covering

claims comprising both composition of matter and methods of use", says

Valderhaug.

Arctic Algae is located in Larsnes, Norway with abundant access to fresh and

clean water from the North Atlantic Ocean with deepwater intake. The company has

all the infrastructure needed for both heterotrophic and phototrophic production

of micro algae, which is the basis for valuable marine oils, proteins, and other

promising ingredients.

"Micro algae is truly an exciting area in the field of bioscience, where major

milestones have been made over the past few years. By choosing specific algae

strains and producing them under certain conditions, unique marine ingredients

could be created. This could then form as a basis for both nutra and pharma

products. Arctic Algae's innovative production process combined with Arctic

Bioscience's extraction technology and market acess is a perfect mach", says

Chairman in Arctic Algae, Tore Tønseth.

Arctic Algae is owned by Ronja Capital II AS, a major shareholder in Arctic

Bioscience. The agreement is in accordance with prevailing legislations for

related party transactions. A third party fairness opinion has been conducted by

Converto AS.

For further information, please contact:

Christer L. Valderhaug

CEO of Arctic Bioscience AS

Mobile: +47 920 84 601

Email: christer@arctic-bioscience.com

Tore Tønseth

Investment Director of Ronja Capital II AS and Chairman in Arctic Algae AS

Mobile: +47 958 06 277

Email: tore@ronjacapital.no

About Arctic Bioscience

Arctic Bioscience is a biotech company developing and commercializing

pharmaceutical and nutraceutical products based on unique bioactive marine

compounds.

The company is developing HRO350 - a novel oral drug candidate. HRO350 is being

developed for treatment of patients with mild-to-moderate psoriasis. This is a

large patient group in need of new effective medicines with beneficial safety

profile.

Nutraceuticals from Arctic Bioscience are sold globally as bulk ingredients as

well as finished goods under the ROMEGA® brand.

Arctic Bioscience is led by a team of highly competent people with experience in

developing marine oils and experience from global pharmaceutical companies.

About Arctic Algae

Arctic Algae AS is a biotechnology company producing micro algae by innovative

reactor technologies. The company has developed new production methods for micro

algae and identified several strains with large commercial potential. The

company is located in Larsnes, Norway with abundant access to fresh and clean

water from the North Atlantic Ocean. Arctic Algae has all the infrastructure

needed for both heterotrophic and phototrophic production of micro algae, which

is the basis for valuable marine oils, proteins, and other promising

ingredients. The company was established in 2020 and is owned 100% by Ronja

Capital II AS, a Norwegian family office with focus on the marine sector.

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.