Arctic Bioscience plans NOK 250 million private placement, listing on Euronext Growth Oslo

ØRSTA: Arctic Bioscience AS has engaged ABG Sundal Collier ASA and DNB Markets as joint global coordinators and joint bookrunners for a contemplated private placement raising gross proceeds of NOK 250 million and admission to trading of the Company’s shares on Euronext Growth Oslo.

Arctic Bioscience is a biotech company founded based on specialised know-how and competence on the unique properties of bioactive marine compounds, and has developed a proprietary platform technology that serves two unique businesses developing products for pharmaceutical and nutraceutical application, respectively.

The Company is strategically located in Ørsta on the West Coast of Norway providing direct access to the raw material, and is led by a team with 30+ years of pharma and marine extracts experience.

Arctic Bioscience is in the process of developing a novel, oral pharmaceutical treatment for mild-to-moderate psoriasis named HRO350. A clinical Phase IIb study, designed in line with recommendations received from the European Medicines Agency, is scheduled to be initiated in the first quarter of 2022.

The Company’s nutraceutical business develops and commercialises high-value marine products and supplies premium and differentiated nutraceutical ingredients and finished products in the global market for dietary supplements.

The Company’s also sells intermediary and finished nutraceutical products to domestic and international business customers and distributors.

In 2019 Arctic Bioscience entered a strategic partnership with Kotler Marketing Group, a leading sales and marketing firm with strong foothold in Asia, as the Company’s sales and marketing partner for greater China.

The Company expects strong growth within this segment driven by the launch of its B2C subscription business outside of Norway, further development of its strategic partnerships, and a shift in focus towards the sale of finished products to its business customers.

Arctic Bioscience plans to invest in a new state-of-the-art manufacturing facility to support the continued progress of its pharmaceutical and nutraceutical businesses. Moving production in-house will ensure full control of the value chain and contribute to increased margin retention.

The future facility will be based on the Company’s proprietary production process, which is protected by a comprehensive portfolio of patents, technological know-how, and confirmed freedom to operate.

The Private Placement and Admission will support Arctic Bioscience’s strategy and ambitions, secure funding beyond the final read out from the upcoming Phase IIb clinical trial with an additional six months buffer, and establish a strong long-term shareholder base that can take part in the Company’s future growth and value creation and allow for a more liquid market for the Company’s shares.

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