Arribatec Group ASA — Earnings Release 2019

Aug 30, 2019

HIDDN - Financial results for the second quarter of 2019

HIDDN - Financial results for the second quarter of 2019

Enclosed please find Hiddn Solutions ASA's report for the second quarter of

Important events in the second quarter of 2019 and year-to date

· Significant changes in the Group's operations

The subsidiary, Hiddn Security AS, reported lower operating revenue than

budgeted and continued loss making during first quarter of 2019. This negative

trend increased in second quarter of 2019.   A new assessment of future sales

and probabilities to find bases for a profit-making business was performed. The

conclusion from the assessment was that this would involve unacceptable risk and

call for additional future funding. Hence, Hiddn Security AS had to enter a

petition for bankruptcy proceedings with Oslo enforcement, bankruptcy and

probate Court. The petition was filed 21 May 2019.

· Changes in management

Carl Espen Wollebekk resigned from his position as CEO in July 2019. Chairman of

the Board Mr. Øystein Tvenge acted as CEO on a temporary basis until Jørgen

Waaler was appointed as CEO for the Company through a part-time management for

hire agreement effective from 1 August 2019.

· Recapitalization efforts - secured commitments in a private placement

On 3 July 2019, the Company announced that it was insolvent and operated at a

loss. Notwithstanding the situation, the Board of Directors considered that

there were grounds to continue a process, safeguarding creditor interests,

whereby exploring possibilities for the Company, which could also be in the

shareholders' interests.

On 17 July 2019, the Company announced that it had received commitments in a

contemplated private placement towards certain existing shareholders and new

investors. The aggregate subscription amount committed was NOK 8.6 million. The

private placement is subject to approval from a shareholder meeting in the

Company to take place on 4 September 2019.

· Strategic initiatives and growth opportunities

The Company worked with various strategic alternatives, including a possible

business combination with Tactilis Pte Ltd, Energos Group and Ayfie Group

respectively.   As announced by the Company, these initiatives were terminated

due to the financial situation in the Company.

The private placement to be approved by the shareholder meeting on 4 September

2019, has secured the Company with sufficient funds to cover all outstanding

debt as well as working capital to pursue new strategic opportunities to add new

business to the Group and with the possibility to create interesting

opportunities for growth and value creation going forward.

***

For further information, please contact:

Jørgen Waaler (CEO), telephone: +47 605 90 010 /e-mail: jorgen@waaler.no