Arctic Bioscience — M&A Activity 2025

Jan 21, 2025

Arctic Bioscience - Joint Venture with Kotler to develop China and other SE Asian markets

Arctic Bioscience - Joint Venture with Kotler to develop China and other SE Asian markets

The sale of ROMEGA®? products in the Chinese market has grown fast the last 3

years and we see significant growth potential. To accelerate the positive

business development, Arctic Bioscience and Kotler Investment Ltd. have signed a

term sheet to establish a joint venture operation to commonly develop the

Chinese and Southeast Asian markets together to truly realize the business

potential.

China is the 3[rd] largest regional Omega-3 market in the world after USA and

Europe with a market size of more than USD 10 billion (finished products), where

dietary supplements alone is about 10%.

The key terms of the term sheet

· Arctic Bioscience to become minority owner in the China and Southeast Asia

sales operation

· Attract growth capital and business partners in Asia to extend the

distribution of ROMEGA®? products in the region

· Strengthen the ROMEGA®?brand in China and Southeast Asia

· Gather all the specific IP for China and Southeast Asian markets under the

Joint Venture

"Establishing a joint venture with Kotler to further scale the Chinese market

and entering Southeast Asian markets, is a natural next step in the

strengthening of our partnership with the Kotler Marketing Group. Kotler

Marketing Group is focusing exclusively on Arctic Bioscience products such as

ROMEGA®? Pregnant women, ROMEGA®? Eye health and ROMEGA®? Brain. Their approach

in China has already proven successful with sales approaching NOK 100 million of

finished products in the Chinese market and forecasted to grow strongly in 2025

and onward. By enhancing their business platform further, we see enormous

opportunities for our products in China and Southeast Asia", says CEO Christer

L. Valderhaug.

Arctic Bioscience delivered a strong close to 30% y/y growth in sales revenues

overall in 2024 and see positive prospects of continued strong growth in 2025

and onward. The recently announced financing solution of NOK 30 million is

estimated to bring the Company into a positive cash flow position in 2026.

For further information, please contact:

Christer L. Valderhaug

CEO

Mobile: +47 920 84 601

Email: christer@arctic-bioscience.com

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 highly skilled team of talents with diverse and

highly relevant background.