Borregaard - Capital/Financing Update 2026

Borregaard ASA: Alginor faces a challenging financial situation

In recent months, Alginor has seen challenges with raw material supply, delayed

product development and commercialisation, and additional cost overruns in the

demonstration plant investment. As of now, Alginor is not positioned to realise

the potential of the demonstration plant investment.

To secure continued operations, the company has frozen the investment in the

demonstration plant and decided to implement temporary layoffs. The aim is to

develop a revised strategy and assess its feasibility. Going forward, the

company will use its pilot plant to investigate and evaluate the potential for

product development, commercialisation, and solutions for raw material supply

and harvesting.

In this process, Borregaard - together with the largest shareholders - have made

available a further NOK 100 million in liquidity on subordinated terms under

Alginor's convertible loan frame.

Borregaard's book value of its investment in Alginor as of 31 March was NOK 292

million, of which NOK 110 million was related to the convertible loan. An

impairment of Borregaard's book value is likely, and an update will be given at

Borregaard's second quarter presentation on 16 July at the latest.

For more information about Alginor and the financial situation, please

see?https://alginor.no/investors/reports-information/ .

Contact:

Director Investor Relations, Pål Espen Ramberg, +47 959 17 333

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

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