The share capital increase pertaining to the Private Placement has now been registered with the Norwegian Register of Business Enterprises. The new registered share capital of the Company is NOK 3,549,003.59 divided by 354,900,359 shares, each with a par value of NOK 0.01.

The new shares will be issued in the VPS and delivered to Hofseth AS as soon as practically possible, in order to settle the share lending agreement entered into in connection with the Private Placement.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Following discussions between the Company's election committee and the management, it has been proposed to nominate Kristin Fjellby Grung as new member of the Board of Directors.

The appointment of Christoph Baldegger to the audit committee is effective immediately, while the election of Kristin Fjellby Grung as new member of the Board of Directors is subject to approval by the Company's general meeting.

The Board of Directors therefore call for an extraordinary general meeting to be held on 4 December 2020 at 13.00 hours CET at the premises of the Company at Havnegata 11, 6005 Ålesund, Norway. The notice for the extraordinary general meeting is attached hereto.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Sections 4-3 and 5-12 of the Norwegian Securities Trading Act

Attachment

• Notice EGM - BoD election

All proposals were approved. Please find the minutes from the meeting attached.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachment

• HBC EGM Minutes

Mr. Holen owns as of the date hereof a total of 1,465,253 shares, equal to 0.41 per cent of the outstanding shares in HBC. 935,388 shares are owned via his fully owned company, Paso AS, and 529,865 shares are held privately.

After the receipt of the above-mentioned proxies, Mr. Holen represents a total of 44,785,167 shares and votes, equal to 12.62% of the voting rights at the upcoming extraordinary general meeting in HBC on 11 November 2020.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBD with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Sections 4-3 and 5-12 of the Norwegian Securities Trading Act

“It is a fantastically sustainable business model. We are transforming yesterday’s waste into high value health nutritional ingredients for people and pets. In the future, through R&D, the compounds of our products will form the basis of new medical therapies. Thus, sustainability and efficient use of marine resources are at the heart of everything we do,” Roger Hofseth, CEO of Hofseth BioCare says.

Hofseth BioCare has worked intensively in expanding the production capacity, adding an integrated spray drying unit and adding R&D laboratories at the main hydrolysis plant, which resulted in unavoidable temporary disruption to production and hence lower volumes and revenues in the quarter.

Operating revenues in Q3 2020 were of NOK 7.6 million, compared to NOK 29.2 million in Q2 2019, when the production was fully operational. Operating profit (EBITDA) in the third quarter was negative NOK 23.2 million (7.6 million), was also affected by continued higher than expected investments in successful R&D projects and optimisation of production processes.

“Q3 has been an eventful one for Hofseth BioCare. We have strengthened the distribution of our products in Asia and Europe through partnerships and acquisitions and we have worked hard to expand and improve the production capacity at our hydrolysis plant in Midsund. This will be important for the future growth of HBC and the future partnership with Nestle owned, Garden of Life.,” Roger Hofseth, says.

“At the same time, we have taken additional steps in terms of medical R&D. We continue to gain scientific support for the positive health effects of our products, and we will continue to invest significant amounts in research. During the third quarter we strengthened our scientific research team in Norway with the recruitment of Dr. Erland Hermansen, who has taken the position as Medical Director for Clinical Development,”

After the end of Q3, Hofseth BioCare received approval from Health Canada for Qualified Health Claims for our Salmon Protein Hydrolysate, ProGo® and CollaGo®. Hofseth BioCare also now has similar Health Claims for its Salmon Protein Hydrolysate as “Bioactive Peptides” for OTC use in the US market.

“We have now support in saying that our bioactive peptides have positive claims on maintaining healthy levels of ferritin and hemoglobin for people with iron deficiency. Our product will be a better alternative than iron supplements for millions of people who struggle with the negative side effects of iron supplements. This opens up a tremendous market opportunity for us,” Roger Hofseth says. “Up to 8% of the North American population and higher levels in developing countries suffer from iron deficiency.”

“After the successful capital increase of NOK 200 million which was executed in October 2020, we also have a strong capital base to continue to deliver on our strategic and R&D roadmap,” Roger Hofseth says.

HIGHLIGHTS IN THE THIRD QUARTER 2020

• Successful extension to manufacturing plant at Midsund, adding new spray drier facility, creating new R&D laboratories and tripling overall footprint for the benefit of Garden of Life in 2021.
• HBC acquired 34 per cent ownership in the Asia-Pacific distributor Atlantic Delights Ltd. in Hong Kong for approx. NOK 6.5m in August.
• Dr. Erland Hermansen hired as Medical Director for Clinical Development.
• Secured distribution with a Global Retailer giant in the UK, Spain, Iceland and online for Brilliant Salmon Oil™ for pets.
• Published an in-vitro study in the journal Functional Foods in Health and Disease which demonstrated the therapeutic potential of HBC's OmeGo® salmon oil for the treatment of certain types of asthma and chronic obstructive pulmonary disease.

POST PERIOD HIGHLIGHTS

• Successful completion of a private placement of NOK 200m by issuance of approx. 24.69m new shares into existing and new institutional shareholders to diversify the holders list and prepare the company for a listing on the main Oslo stock exchange in Q4 2020.
• Received approval from Health Canada on ProGo® and CollaGo® for qualified health claims focused on maintaining healthy levels of ferritin and hemoglobin and the blood components required for oxygen transport.
• ProGo®'s bioactive peptides to support healthy iron levels allowed to be used in the US with a unique label of six structure function claims permitted by the FDA.

Please find the Third Quarter 2020 Financial Report enclosed.

For further information, please contact:
James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre- clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age- related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC- IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachment

• HBC Q3 2020 Financial Report

The share capital increase pertaining to the Private Placement has now been registered with the Norwegian Register of Business Enterprises. The new registered share capital of the Company is NOK 3,549,003.59 divided by 354,900,359 shares, each with a par value of NOK 0.01.

The new shares will be issued in the VPS and delivered to Hofseth AS as soon as practically possible, in order to settle the share lending agreement entered into in connection with the Private Placement.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Roger Hofseth is CEO and primary insider in Hofseth BioCare ASA. After the transaction, Roger Hofseth AS owns 51,439,998 shares corresponding to 15.58 % of the outstanding shares in Hofseth BioCare ASA.

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Considering the travel and meeting recommendations and restrictions currently in place due to the extraordinary situation with the Covid-19 pandemic, all shareholders are encouraged to submit a voting proxy to the chairman of the board in lieu of attending the General Meeting in person.

Please find the notice of the Extraordinary General Meeting attached.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 93632966
E-mail: investor@hofsethbiocare.no

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachment

• 201021 - Notice of EGM

Approved Recommended Use and Purpose are: “helps maintain healthy levels of ferritin and hemoglobin”, “helps maintain healthy levels of blood components required for oxygen transport”, “provides antioxidants for the maintenance of good health” and “helps promote healthy skin”. Of note, the bioactive peptides do not contain any actual antioxidant compounds (natural or added), rather the bioactive peptides contained in ProGo ® and CollaGo ® upregulate the body’s natural antioxidant genes to deliver this vital health benefit.

Using size exclusion chromatography and MALDI-TOF analysis, HBC has identified the active peptide fraction leading to the increase in ferritin and hemoglobin. This fraction consists of a limited number of structurally related peptides. During H1 2021, having already identified one or more of these peptides that are responsible for the increase in ferritin, HBC plans to produce a new composition of matter claim and commence clinical trial work for the prescription drug claim for the treatment of IDA.

HBC can now sell ProGo® and CollaGo® across the whole of North America following the unique set of Structure Function Claims in the US (with reference to the press release on 13^th October). Iron supplementation is a significant market in the US alone with approximately 20% of women, 50% of pregnant women and 3% of men lacking sufficient iron stores in their body. HBC’s bioactive peptides can now offer an alternative solution to this common problem without the need for iron which frequently results in GI irritation. Furthermore, Health Canada’s QHCs are internationally recognized by most Asian countries and therefore will be passported for their use in those countries too.

About HBC’s Bioactive Peptides

The bioactive peptides in ProGo® and CollaGo® are produced via HBC’s patented enzymatic hydrolysis of salmon offcuts (left-over “waste” of the fish after filleting). The resulting peptides and amino acids are more easily handled by the body with a resulting 98% bioavailability (absorption). Beyond nutrition, the peptides have shown significant bioactivity positively impacting numerous body systems including anti-inflammatory and antioxidant effects, gastrointestinal protection, weight loss and aiding the maintenance of healthy blood counts. Ongoing trial work continues to further assess the health benefits of ProGo® and to identify the bioactive peptides driving the beneficial effects.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Dr. Crawford Currie, Medical R&D at Hofseth BioCare ASA
Phone: +44 7968 195497
E-mail: cc@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

As a consequence of the Private Placement the shareholding of funds managed by Bonafide (Bonafide Global Fish Fund, Bonafide Best Catches I, Deep Blue Ventures I, and Deep Blue Ventures III) falls below 20 % of the total shares outstanding in Hofseth BioCare ASA following the Private Placement. Bonafide funds controls a total of 69,302,732 shares in Hofseth BioCare ASA corresponding to approx. 19.53 % of total shares outstanding after the Private Placement.

This information is subject to the disclosure requirements pursuant to sections 4-3 and 5-12 of the Norwegian Securities Trading Act.

This information is published in accordance with the requirements of the Continuing Obligations.

(Ålesund, 16 October 2020) Reference is made to the stock exchange release from Hofseth Biocare ASA ("HBC" or the "Company") published on 15 October 2020 regarding a contemplated private placement.

The Company hereby announces that it has allocated 24,691,358 new shares in the Company (the "Offer Shares") in a private placement (the "Private Placement") at a subscription price of NOK 8.10 per share, corresponding to a total size of the Private Placement of NOK 200 million. The Private Placement was significantly oversubscribed.

Pareto Securities acted as sole manager in connection with the Private Placement.

The net proceeds of the Private Placement will be used for R&D activities, expanding production capacity, ramping up sales and marketing, as well as for general corporate purposes.

Notification of allotment of the Offer Shares including settlement instructions will be sent to the applicants through a notification from the Manager on or about 16 October 2020. The Offer Shares will be settled through a delivery versus payment transaction on or about 20 October 2020 with existing and unencumbered shares in the Company that are already admitted to trading on Oslo Axess, pursuant to a share lending agreement between the Company, the Manager, Hofseth International AS, Hofseth AS and Seafood Farmers of Norway AS. The Offer Shares will be tradable from allocation, i.e. from 16 October 2020.

In order to settle the share loan, the Company's Board of Directors has resolved to issue 24,691,358 new shares in the Company to the Manager pursuant to the authorization granted by the Company's annual general meeting on 25 May 2020. Consequently, the share capital of the Company will be increased with NOK 246,913.58 from NOK 3,302,090.01 to NOK 3,549,003.59. Following registration of the new share capital pertaining to the Private Placement, the Company will have 354,900,359 shares outstanding, each with a par value of NOK 0.01.

The Company's Board is of the opinion that the Private Placement complies with the equal treatment obligations under the Norwegian Securities Trading Act and Oslo Børs' Circular no. 2/2014, in particular due to the fact that (i) in the current market, a private placement had a larger possibility of success compared to a rights issue and, therefore, gives the Company timely access to the new capital at lower risk; (ii) the cost of raising capital is assumed to be lower than in a rights issue since any discount is likely to be smaller and subscription guarantees are avoided; and (iii) the Company intends to carry out a subsequent offering directed towards shareholders not offered to participate in the Private Placement (the "Subsequent Offering"). On this basis and based on an assessment of the current equity markets, the Company's Board has considered the Private Placement to be in the common interest of the Company and its shareholders. As a consequence of the Private Placement structure, the shareholders' preferential rights were deviated from.

Subject to the approval of a prospectus by the Norwegian Financial Supervisory Authority, HBC will carry out a Subsequent Offering of up to 4,983,271 new shares in the Company, corresponding to gross proceeds of up to approximately NOK 40 million. The Subsequent Offering will be made on the basis of a prospectus and will be directed towards eligible shareholders in the Company who (i) are shareholders as of 15 October 2020, as registered in the VPS as of 19 October 2020, (ii) were not provided with insider information in the pre-sounding phase of the Private Placement, (iii) were not allocated Offer Shares in the Private Placement, or (iv) are not resident in a jurisdiction where such offering would be unlawful, or would (in jurisdictions other than Norway) require any prospectus filing, registration or similar action (the "Eligible Shareholders"). The Eligible Shareholders will be granted non-tradable subscription rights. Over-subscription will be permitted, but subscription without subscription rights will not be permitted in the Subsequent Offering. The subscription period in the Subsequent Offering is expected to commence shortly after publication of a prospectus, and the subscription price in the Subsequent Offering will be the same as in the Private Placement.

Advokatfirmaet CLP DA acts as Norwegian legal counsel in connection with the Private Placement.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy at Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Jon Olav Ødegård, CFO at Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

HBC is listed on Oslo Axess with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare.

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

(Ålesund, 15 October 2020) Hofseth Biocare ASA ("HBC" or the "Company") has engaged Pareto Securities AS (the "Manager") to advise on and effect a contemplated private placement of new shares, after the close of trading on Oslo Axess today (the "Private Placement").

The Private Placement is directed towards Norwegian and international investors, subject to applicable exemptions from relevant registration, filing and prospectus requirements, and subject to other applicable selling restrictions. The minimum application and allocation amount have been set to the NOK equivalent of EUR 100,000. The Company may however, at its sole discretion, allocate amounts below EUR 100,000 to the extent exemptions from the prospectus requirement in accordance with applicable regulations, including the Norwegian Securities Trading Act and ancillary regulations, are available.

Through the Private Placement, the Company is offering new shares (the "Offer Shares") in the Company to raise gross proceeds of up to NOK 200 million. The total size of the Private Placement, the subscription price and allocation of shares in the Private Placement will be determined by the Company's board of directors following an accelerated bookbuilding process. The bookbuilding period commences today at 16:30 CEST and will close at 08:00 CEST tomorrow, 16 October 2020. The bookbuilding may, at the discretion of the Company and the Manager, close earlier or later and may be cancelled at any time and consequently, the Company may refrain completing the Private Placement. The Company will announce the final number of Offer Shares placed and the final subscription price in the Private placement in a stock exchange announcement expected to be published before the opening of the Oslo Axess tomorrow, 16 October 2020. Completion of the Private Placement is subject to final approval by the Company's Board of Directors.

Subject to successful completion of the Private Placement, the Company also expects to apply for a transfer of listing from Oslo Axess to the main list on the Oslo Stock Exchange ("Oslo Børs") within Q4 2020. However, the Board of the Company has not yet formally resolved to apply for such transfer of listing and no assurance can be given that the board of directors of Oslo Børs will approve the Company's application for a transfer of listing or that the timing of such transfer of listing will not change.

The net proceeds of the Private Placement will be used for R&D activities, expanding production capacity, ramping up sales and marketing, as well as for general corporate purposes.

Successful completion of the Private Placement is also expected to secure 12 months of liquidity and increase the Company's shareholder base and the free float of the Company's shares, and thereby enable the Company to comply with the listing requirements for a listing on the Oslo Børs.

The completion of the Private Placement by delivery of Offer Shares is subject to: (i) all necessary corporate resolutions being validly made by the Company, including without limitation, the Company’s board of directors resolving to approve the Private Placement and issue the Offer Shares pursuant to an authorisation given by the Company’s annual general meeting held on 25 May 2020.

Certain existing shareholders and new investors have collectively indicated that they will subscribe for NOK 145 million.

The Offer Shares allocated in the Private Placement are expected to be settled through a delivery versus payment transaction by delivery of existing and unencumbered shares in the Company, that are already admitted to trading on Oslo Axess, pursuant to a share lending agreement between the Company, the Manager, Hofseth International AS, Hofseth AS and Seafood Farmers of Norway AS. The Offer Shares will be tradable from allocation. The Manager will settle the share loan with a corresponding number of new shares in the Company to be issued by the Board of Directors pursuant to its authorization to increase the share capital.

The Company's Board has considered the Private Placement in light of the equal treatment obligations under the Norwegian Securities Trading Act and Oslo Børs' Circular no. 2/2014 and is of the opinion that the contemplated transaction is in compliance with these requirements. The share issuance will be carried out as a private placement in order to complete a transaction in an efficient manner. Further, the Company contemplates to carry out a repair issue directed towards eligible shareholders who (i) were not provided with insider information in the pre-sounding phase of the Private Placement, (ii) were not allocated Offer Shares in the Private Placement, or (iii) are not resident in a jurisdiction where such offering would be unlawful, or would (in jurisdictions other than Norway) require any prospectus filing, registration or similar action. On this basis and based on an assessment of the current equity markets, the Company's Board has considered the Private Placement to be in the common interest of the Company and its shareholders. As a consequence of the Private Placement structure, the shareholders' preferential rights will be deviated from.

Advokatfirmaet CLP DA acts as Norwegian legal counsel in connection with the Private Placement.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy at Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Jon Olav Ødegård, CFO at Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This release is an announcement issued pursuant to legal information obligations, and is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Important information:

This announcement is not and does not form a part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company. The distribution of this announcement and other information may be restricted by law in certain jurisdictions. Copies of this announcement are not being made and may not be distributed or sent into any jurisdiction in which such distribution would be unlawful or would require registration or other measures. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.

The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and accordingly may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and in accordance with applicable U.S. state securities laws. The Company does not intend to register any part of the offering or their securities in the United States or to conduct a public offering of securities in the United States. Any sale in the United States of the securities mentioned in this announcement will be made solely to "qualified institutional buyers" as defined in Rule 144A under the Securities Act.

In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation, i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State. The expression "Prospectus Regulation" means Regulation 2017/1129 as amended together with any applicable implementing measures in any Member State.

This communication is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only for relevant persons and will be engaged in only with relevant persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control.

Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in demand for the Company’s products, changes in the general economic, political and market conditions in the markets in which the Company operate, the Company’s ability to attract, retain and motivate qualified personnel, and changes in laws and regulation and the potential impact of legal proceedings and actions. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not provide any guarantees that the assumptions underlying the forward-looking statements in this announcement are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this announcement or any obligation to update or revise the statements in this announcement to reflect subsequent events. You should not place undue reliance on the forward-looking statements in this document.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.

Neither the Manager nor any of its affiliates makes any representation as to the accuracy or completeness of this announcement and none of them accepts any responsibility for the contents of this announcement or any matters referred to herein.

This announcement is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any securities or a recommendation to buy or sell any securities in the Company. Neither the Company, the Manager nor any of their respective affiliates accepts any liability arising from the use of this announcement.

Attachment

• HBC - Business Presentation October 2020

Bioactive Peptides™ are in the unique position of being the first and only non-iron containing product in the US market to maintain healthy levels of ferritin and hemoglobin. As such, ProGo® is free from the gastrointestinal (GI) effects seen with iron supplementation such as nausea, vomiting, constipation, and a metallic taste. Unsurprisingly, these GI effects can result in poor compliance and variable treatment outcomes with iron supplements.

It is anticipated that HBC will now look to collaborate with global formulators and contract manufacturers to establish a major presence in the nutraceutical market with a portfolio of offerings with the aforementioned claims.

“Our vision is to utilize all off-cuts from the fish farming industry to help develop tomorrow's diet and medicine, and now we are succeeding. Our research and procedures are strong. Hofseth BioCare is a unique example of how long-term investment results in world leading technology which enables the upcycling of waste into a valuable resource. We help the fish farming industry improve its sustainability, and at the same time we contribute to improving people’s lives through better health,” says Roger Hofseth, CEO of Hofseth BioCare.

The U.S. structure function claims are based on two studies of ProGo® in adults (18 years and older). Trial 1 was conducted in 48 otherwise healthy adults with iron deficiency anemia. Trial 2, a smaller, supporting study for safety, was conducted in 14 healthy adults with normal blood counts, i.e. non-anemic subjects. Both trials used whey protein isolate (WPI) as the comparator / placebo. Unlike ProGo®, WPI did not have a significant impact on ferritin or hemoglobin in either study.

It is anticipated that HBC’s work to identify the peptide fraction driving the positive effect on ferritin and hemoglobin will be completed by Q1 2021. This will enable encapsulation of the peptide fraction and the commencement of the next stage of clinical development of the Bioactive Peptides™.

“Our product will be a better alternative for millions of people who struggle with negative side effects or poor effect of traditional iron supplementation. For Hofseth BioCare, we see vast market opportunities crystalize,” says Crawford Currie, Medical R&D, in Hofseth BioCare.

Currently dietary modification or iron supplementation, either via tablets or injection, are the only ways available to increase iron levels or absorption. Dietary modification is often impractical for social, economic or cultural reasons and iron supplementation frequently causes gastrointestinal side effects. Iron supplementation also carries the risk of toxicity from iron overload. As such, HBC believes that ProGo® now provides an important new non-iron containing option for the maintenance of healthy levels of ferritin and hemoglobin. Bioactive Peptides™ are very well tolerated and have no GI side effects, rather they support GI health.

About ProGo®

ProGo® is produced via HBC’s patented enzymatic hydrolysis of salmon offcuts (left-over “waste” of the fish after filleting). The resulting peptides and amino acids are more easily handled by the body with a resulting 98% bioavailability (absorption). Beyond nutrition, the peptides have shown significant bioactivity and aiding the maintenance of healthy blood counts. Ongoing trial work continues to further assess the health benefits of ProGo® and to identify the bioactive peptides driving the beneficial effects.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Dr. Crawford Currie, Medical R&D at Hofseth BioCare ASA
Phone: +44 7968 195497
E-mail: cc@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Additional lead clinical and pre-clinical candidates are in development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

The application to Health Canada is based on two studies of ProGo® in adults (18 years and older). Trial 1 was conducted in 48 otherwise healthy adults with iron deficiency anemia. Trial 2, a smaller, supporting study for safety, was conducted in 14 healthy adults with normal blood counts, i.e. non-anemic subjects. Of note, ProGo® contains minimal iron (3mg/kg) and is therefore free from the gastrointestinal side effects seen with iron tablets such as nausea, constipation and a metallic taste.

About ProGo®

ProGo® is produced via HBC’s patented enzymatic hydrolysis of salmon offcuts (left-over “waste” of the fish after filleting). The resulting peptides and amino acids are more easily handled by the body with a resulting 98% bioavailability (absorption). Beyond nutrition, the peptides have shown significant bioactivity positively impacting numerous body systems including anti-inflammatory and antioxidant effects, gastrointestinal protection, weight loss and aiding the maintenance of healthy blood counts. Ongoing trial work continues to further assess the health benefits of ProGo® and to identify the bioactive peptides driving the beneficial effects.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Dr. Crawford Currie, Medical R&D at Hofseth BioCare ASA
Phone: +44 7968 195497
E-mail: cc@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

This Health Canada approved phase 2 clinical trial will examine the benefit of CARDIO™ soft gels / OmeGo®, in combination with the best standard of care (BSC) in former smokers and/or steroid-resistant asthmatics with COVID-19. This group of patients are at a higher risk of progression to severe acute respiratory distress syndrome (ARDS) with COVID-19 infection. The inflammatory response in the lungs of these patients is typically driven by eosinophils and HBC’s research has identified a minor lipid fraction within OmeGo® that modulates eosinophil effector function.

Participants will be provided with all the equipment and resources needed to complete the study assessments virtually. Some of the planned study outcomes include improvements in daily oxygenation requirements, alleviation of COVID-19 related symptoms, and time to clinical recovery. Clinical status will be assessed by a World Health Organization clinical improvement scale.

KGK is actively recruiting participants in the Greater Toronto Area (GTA), Ottawa, Windsor-Essex County, Waterloo, Hamilton, Niagara, Middlesex-London, Guelph, and Simcoe regions to take part in the research study.

The second part of the study will recruit patients hospitalised with COVID-19, as per the prior stock exchange notices. However, this part of the trial will now be conducted in Brazil and Mexico where hospitalization rates remain high which will enable a timely recruitment schedule. The in-hospital arm is scheduled to begin by late November, pending regional regulatory approvals.

About OmeGo®

OmeGo® contains the full spectrum of omega fatty acids including EPA, DHA and DPA offering benefits on human cholesterol levels including reduction of the CVD biomarker, oxLDL-GP1, for which HBC has global patent rights. Only OmeGo® contains all the lipid-soluble compounds found in fresh salmonid fish thus providing all of the health benefits seen when consuming an oily fish-based diet. HBC uses its proprietary enzymatic hydrolysis technology to sustainably extract all the nutrients from the fish and transforms them into high value health products for human and pet consumption.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Dr. Crawford Currie, Medical R&D at Hofseth BioCare ASA
Phone: +44 7968 195497
E-mail: cc@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

The share capital increase in relation to the share issue has now been registered with the Norwegian Register of Business. The new share capital of the Company is NOK 3,302,090.01 divided by 330,209,001 shares, each with a par value of NOK 0.01.

For further information, please contact:

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Eosinophils are white blood cells (leukocytes) which form part of the body’s immune system helping to deal with infections. However, overactivity of eosinophils is seen in numerous inflammatory conditions including eosinophilic asthma. Poorly controlled inflammation reduces lung function and increases the risk of asthma exacerbations and hospitalisation.

This in-vitro study investigated the prophylactic effect of HBC’s enzymatically extracted salmon oil, OmeGo®, as a proxy for eating fresh whole oily fish, on eosinophil function using allergic human peripheral blood eosinophils.

The results of the study show that prophylactic treatment of allergic human peripheral blood eosinophils with OmeGo® modulates eosinophil effector function (measured via shape change assay and integrin expression) and increases apoptosis (programmed cell death). The eosinophil inhibition with OmeGo® was comparable to APOA-IV (active control) and markedly better than processed salmon oil. Krill oil and standard fish oil showed no to low eosinophil modulation. This indicates that a non-Omega fraction in OmeGo® provides this targeted action of modulating eosinophil function and that this fraction is mostly destroyed in processed salmon oil and absent in Krill oil and standard “18/12” fish oil.

Pre-clinical work with OmeGo® targeting eosinophil effector function is ongoing with guinea pig dosing studies and house dust mite studies. Human studies in eosinophilic asthma are planned to commence in 2021. A phase 2/3 trial (NCT04465513) of OmeGo® in the treatment of eosinophilic COVID-19 patients is ongoing and interim results are expected during Q4 2020. The trial is randomising patients with early Covid-19 pulmonary symptoms to best standard of care (BSC) vs BSC and OmeGo® CARDIO soft gels to prevent disease progression to severe respiratory distress. The primary endpoint is the number of days on assisted ventilation.

About 7-8% of the population suffer from asthma. Eosinophils are estimated to be important drivers of asthma in up to 40% of asthmatics overall and in up to 60% of patients with severe asthma. Inhaled bronchodilators (“relievers”), which expand the airways in the lungs, and inhaled corticosteroids, which reduce airway inflammation, are a mainstay of asthma treatment. However, a significant number of patients still suffer from asthma symptoms and exacerbations and are commonly referred to as steroid treatment resistant asthma patients, typically the result of eosinophil dysfunction. Additional treatment options targeting the underlying asthma disease process, especially those delivered orally, would be of significant benefit to patients struggling to gain adequate asthma control from standard therapy.

About OmeGo®

OmeGo® contains the full spectrum of omega fatty acids including EPA, DHA and DPA offering benefits on human cholesterol levels including reduction of the CVD biomarker, oxLDL-GP1, for which HBC has global patent rights. Only OmeGo® contains all the lipid-soluble compounds found in fresh salmonid fish thus providing all of the health benefits seen when consuming an oily fish-based diet. HBC uses its proprietary enzymatic hydrolysis technology to sustainably extract all the nutrients from the fish and transforms them into high value health products for human and pet consumption

Chronic obstructive pulmonary disease (COPD) is a type of obstructive lung disease characterized by long-term breathing problems and poor airflow. It is most commonly caused by smoking. The main symptoms include shortness of breath and cough with sputum production. COPD is a progressive disease, meaning it typically worsens over time. As well as its progressive nature patients suffer acute exacerbations with a sudden worsening of symptoms and associated increased lung inflammation. Around 20%-40% of COPD patients have raised blood eosinophils.

The full article from the Functional Foods in Health and Disease journal is attached.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy at Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Dr. Crawford Currie, Medical R&D at Hofseth BioCare ASA
Phone: +44 7968 195497
E-mail: cc@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

Attachment

• Study modulation of eosinophil effector function FFHD

James Berger has now exercised a total of 1,135,120 share options, as 324,320 share options are exercisable due to the volume weighted average price of the Company's shares having been at least NOK 8.00 over a period of 45 trading days and 810,800 share options are exercisable as the 9 month anniversary of the date of the consultancy agreement has passed. The exercise price of the share options is NOK 0.01 per share option.

On this background, the Board of Directors of the Company has now resolved to issue 1,135,120 new shares to James Berger, at a price of NOK 0.01 per share. The new shares are expected to be delivered to Berger during the middle of September 2020.

Following this, James Berger holds 3,267,955 shares in the Company and 5,349,280 share options.

The issuance of the new shares imply that the Company's share capital will increase with NOK 11,351.20. Following completion of the share capital increase, the Company's share capital will be NOK 3,302,090.01 divided by 330,209,001 shares, each with a par value of NOK 0.01.

For further information, please contact:

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

“Extracting high value nutrition and medical products from low value waste from salmon production is the core of our business, and I am very happy to see that have made significant progress during the second quarter, even in a market environment affected by the Covid-19 pandemic. Our revenue growth is particularly driven by the successful commercialization of our high-quality salmon oil and protein powder. Both these products have proven health benefits which make them attractive in the market. Our newly signed distribution agreement with a global retailer giant with strong presence in UK and Spain is clear evidence of the quality of our products,” CEO of Hofseth BioCare Roger Hofseth says.

“In parallel with the commercial roll-out of our current product portfolio, we continue to take important steps forward when it comes to developing Hofseth BioCare into a true biotech company. Right now, we are starting a fast track phase II clinical study aiming to document whether fat-soluble components in our salmon oil can save lives among COVID-19 patients with breathing difficulties. We are also optimistic that we soon will receive a health label from Canadian health authorities approving that our salmon protein hydrolysate products CollaGo® and ProGo® have a corrective effect of iron deficiency anaemia. These are only two of the close to 20 scientific indications we have of nutrition and health benefits of our products, and hence our potential is tremendously large. We will increase our investments in targeted research and development to exploit this potential,” CEO Roger Hofseth says.

HIGHLIGHTS IN THE SECOND QUARTER 2020

• Signed research agreement and started our research collaboration with Prof. Karl Sylvester at Stanford University School of Medicine on a multi-year pre-clinical and clinical program towards a Necrotizing EnteroColitis (NEC) and Irritable Bowel Disease (IBD) label claim for our Soluble Protein Hydrolysate (SPH).
• Initiated accelerated COVID-19 Phase 2 clinical trial of OmeGo® salmon oil to decrease Acute Respiratory Distress Syndrome and the need for assisted respiration
• Brilliant Salmon Oil™ brand launched in USA, contracts with new US distributors signed for delivery from end of May.
• HBC Berkåk obtained Kosher certification
• Received approval for a loan facility of NOK 38m to increase cash balance and secure further R&D activities

POST PERIOD HIGHLIGHTS

• Signed an agreement to acquire 34 per cent ownership in the Asia-Pacific distributor Atlantic Delights Ltd. in Hong Kong for approx. NOK 6.5m in August
• Dr. Erland Hermansen hired as Medical Director for Clinical Development
• Secured distribution with a Global Retailer giant in the UK, Spain, Iceland and online for Brilliant Salmon Oil™ for pets

Please find the Second Quarter & Half Year 2020 Financial Report enclosed.

For further information, please contact:
James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBD with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachment

• HBC Q2 2020 Financial Report

This retail distribution agreement with a global leading club store is an important milestone for HBC in its efforts for global distribution of Brilliant Salmon Oil™. The launch has started very successfully, and in-store incentive promotions will start at the end of the month to raise even more awareness.

Kai Morten Thuen, Hofseth BioCare ASA’s Head of Sales & Marketing states, “This is an honor and great recognition for our company. We are thrilled to enter this retail agreement with one of the most well-renowned global retailers, known for their rigorous quality standards. It further accelerates our growth strategy for our pet care market flagship product, Brilliant Salmon Oil.”

Furthermore, in the last three months, HBC has signed up seven more distributors in the US and Canada, covering most of North America. Brilliant Salmon Oil™ first entered a US store in April of this year and will be available in over 1,000 stores by the end of September. The speed of this success, despite a COVID-19 market slowdown, is seen as very encouraging and outpaces our expectations.

About Brilliant Salmon Oil:

Brilliant Salmon Oil by Hofseth BioCare is produced in Norway using the purest process possible. Due to the unique patented extraction process – without boiling or pressing the oil – all the natural nutrients in the Atlantic Salmon are preserved. The whole process happening within hours, result in the purest and most transparent oil, completely free of additives. Brilliant contributes to shinier coat, softer paws, as well as helping to prevent cardiovascular disease.

For further information, please contact:

Kai Morten Thuen, Head of Sales and Marketing at Hofseth BioCare ASA
Phone: +47 91638401
E-mail: kmt@hofsethbiocare.no

James Berger, Head of Investor Relations & Strategy at Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anaemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

HBC pays approx. USD 700,000 for a 34 % stake in AD and with that ownership, obtains an import license and distribution license in China which would otherwise be very difficult to attain. HBC and AD have already started to merge sales teams to improve and increase distribution reach and achieve other synergies in the Asia Pacific markets. The registration process for the distribution of all other finished products for human nutrition from HBC has also begun and is expected to be approved shortly.

“As our most valued customer in China, we have now taken the opportunity to take direct ownership in their business to help grow their sales and distribution strategy. HBC will now leverage AD’s existing import and distribution licenses that would otherwise be difficult to attain as outsiders, so this gives us a direct option at taking advantage of the phenomenal opportunity with the Chinese pet care market. China is currently our largest market for Brilliant salmon oil, and we expect its growth to accelerate further from here. All other finished products will also be able to be distributed using this domestic entity going forward which represents another untapped opportunity for us,” says CEO Roger Hofseth of Hofseth BioCare.

The acquisition comes at an exciting time for HBC with Brilliant Salmon Oil™ in particular having phenomenal success in multiple markets and already beating internal company expectations for 2020 with multiple platform launches in Europe and the US and through several distributors covering most of North America. Brilliant Salmon Oil is now the best-selling finished product from HBC.

The last 3 years, AD has a sales CAGR of 330 % and we expect growth to accelerate in the next few years when they join forces with HBC’s existing sales team and as they include other products from HBC into their product range.

For further information, please contact:
Roger Hofseth, CEO of Hofseth BioCare ASA
Phone: +47 951 47 941
E-mail: rh@hofseth-as.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Along with his medical qualifications Dr. Hermansen holds a PhD from The University of Bergen which assessed different surgical approaches for lumbar spinal stenosis.

Dr. Hermansen's deep understanding of the musculoskeletal system and clinical trial delivery makes him ideal for the role of Medical Director for Clinical Development at HBC. HBC’s marine bone powder CalGo® is set to enter clinical development following preclinical work which has shown marked differentiation from other forms of calcium replacement, both for bone mass and strength. In addition to the planned work in bone health (osteoporosis) and joint health (osteoarthritis). Dr. Hermansen is excited by the potential for CalGo® in other orthopaedic settings and preclinical work in these areas is set to commence imminently.

Osteoporosis is estimated to affect 200 million women globally and osteoarthritis an estimated 250 million individuals globally. CalGo® provides all the key elements of healthy bone: type II collagen, calcium hydroxyapaptite (the natural form of bone calcium) and trace elements. HBC believes that it is essential to provide all these key building blocks to provide the greatest impact on both improving and maintaining bone and joint health. As such, HBC is highly focused on the timely delivery of clinical data for CalGo® to demonstrate these important benefits and the hiring of Dr. Hermansen is pivotal for this effort.

Also, Dr. Hermansen has today indirectly purchased 400,000 shares in HBC at NOK 8.74, equal to the closing price on Tuesday 25 August 2020, through a 3.64 % shareholding in Brilliant Invest AS. For further information about Brilliant Invest AS and its HBC shareholdings, please see https://newsweb.oslobors.no/message/485842

For further information, please contact:

Dr. Crawford Currie, Medical R&D at Hofseth BioCare ASA
Phone: +44 7968 195497
E-mail: cc@hofsethbiocare.no

James Berger, Head of Investor Relations & Strategy at Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.

Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Menlo Park, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare

The share capital decrease has now been registered with the Norwegian Register of Businesses. The new share capital of the Company is NOK 3,290,738.81 divided by 329,073,881 shares, each with a par value of NOK 0.01.

The share capital decrease will be registered in the VPS as soon as practically possible.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

The share capital decrease has now been registered with the Norwegian Register of Businesses. The new share capital of the Company is NOK 3,290,738.81 divided by 329,073,811 shares, each with a par value of NOK 0.01.

The share capital decrease will be registered in the VPS as soon as practically possible.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

The trial will recruit 100 former smokers and steroid-resistant asthma patients (“Patients”), who exhibit early non-acute lung injury caused by the SARS-CoV-2 virus. As noted previously, publications from the US CDC, Chinese CDC and Italian CCM show former smokers to be at particularly high risk for COVID-19-based ARDS progression into ICU care.

HBC’s randomized, placebo-controlled trial will aim to slow the progression of ARDS in Patients with confirmed SARS-CoV-2 infection who exhibit early pulmonary symptoms. The Patients will receive the best current antiviral standard of care (BSC) in the placebo arm and BSC+CARDIO soft gels in the treatment arm. The primary endpoint will measure reduction in requirement for assisted respiration.

An interim analysis will be performed after the first 30 Patients complete treatment. With a planned treatment duration of 15 days, an initial data read-out from the first part of the trial is anticipated within 12 weeks of the first patient goes on treatment. The trial is being initially funded from HBC’s existing R&D budget for 2020.

HBC’s ongoing research has shown that the OmeGo® salmon oil present in the CARDIO soft gels contain lipid-soluble components that reduce eosinophil effector function (EEF) and increase eosinophil apoptosis (programmed cell death). These results have been validated in various invitro cellular assays at 100 ug/ml concentrations as well as animal model work at differing doses (g/kg) of OmeGo® oil. HBC believes that modulating eosinophil function, along with the other anti-inflammatory and antioxidant properties of OmeGo®, will reduce the number of Patients who will require assisted respiration management as well as reduce the total number of days on assisted respiration/ICU care.

Eosinophils are white blood cells (leukocytes) which form part of the body’s immune system helping to deal with infections. Changes in smoking patterns can trigger lung tissue injury via the recruitment and persistence of eosinophils. In former smokers, bilateral ground-glass opacities on CT-scan images are visible which appear to be similar to the CT lung images of COVID-19 patients. Mistimed and uncontrolled eosinophil production in lung epithelial cells plays a critical role in destruction of the respiratory epithelium and rapid development of acute ARDS.

HBC recently announced the filing of a US patent application (630063274 04/07/2020) on minor components in OmeGo® salmon oil that significantly attenuate respiratory eosinophilic inflammation, as a treatment for the management of asthma, particularly steroid-resistant asthma.

Overactivity of eosinophils is seen in numerous inflammatory conditions including eosinophilic asthma. About 7-8% of the population suffer from asthma. Eosinophils are estimated to be important drivers of asthma in around 40% of asthmatics overall and in up to 60% of patients with severe asthma. Inhaled bronchodilators (“relievers”), which expand the airways in the lungs, and inhaled corticosteroids, which reduce airway inflammation, are a mainstay of asthma treatment. However, a significant number of patients still suffer from asthma symptoms and exacerbations and are commonly referred to as steroid-resistant asthma patients. As such, additional treatment options targeting the underlying asthma disease process, especially those delivered orally, would be of significant benefit to patients.

HBC will continue to develop a product for treating steroid-resistant asthma in parallel with its COVID-19 clinical trials, progressing towards preclinical animal trials in Q3 2020 and based on a positive outcome, progressing to Phase 1 clinical trials in 2021. A large scientific and clinical evidence base has identified the white blood cells and related cytokines responsible for initiating and sustaining bronchial inflammation in different subtypes of asthma. As such, eosinophilic asthma is an ideal setting to test the potential benefit of the minor fraction within OmeGo® in terms of improved lung function, reduced exacerbation rates and even potentially reduced steroid usage.

About OmeGo®

OmeGo® contains the full spectrum of omega fatty acids including EPA, DHA and DPA offering benefits on human cholesterol levels including reduction of the CVD biomarker, oxLDL-GP1, for which HBC has global patent rights. Only OmeGo® contains all the lipid-soluble compounds found in fresh salmonid fish thus providing all of the health benefits seen when consuming an oily fish-based diet. HBC uses its proprietary enzymatic hydrolysis technology to sustainably extract all the nutrients from the fish and transforms them into high value health products for human and pet consumption.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy at Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Dr. Crawford Currie, Medical R&D at Hofseth BioCare ASA
Phone: +44 7968 195497
E-mail: cc@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachment

• HBC AGM 2020 Minutes

Cash and cash equivalents decreased by NOK 27.1m during the quarter, leaving total holding of cash and cash equivalents at NOK 67.5m by the end of the period.

Total assets for HBC were NOK 293.7m at the end of first quarter of 2020 (NOK 245.1m). Deferred tax assets are not posted in the balance sheet. Estimated value is NOK 147.6m. Total equity amounted to NOK 122.8m (NOK 66.8m) corresponding to an equity ratio of 41.8 % (27.3 %) for the group.

HIGHLIGHTS IN THE FIRST QUARTER 2020

• In January, HBC signed a new credit facility of up to NOK 37m for working capital needs related to future sales contracts.
• In March, HBC signed a comprehensive distribution contract with Prinova Europe. The agreement is a European exclusive distribution contract for branded marine products.
• On March 23rd HBC completed a private placement towards Chief Science Officer Dr. Bomi Framroze, through issuance of 3,253,370 new shares and Dr. Framroze now holds a total of 5 million shares in HBC.
• Preclinical research with OmeGo® demonstrates potential to target eosinophil-driven illnesses including steroid-resistant asthma.

Please find the First Quarter 2020 Financial Report attached.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBD with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachment

• HBC Q1 2020 Financial Report

OmeGo® contains minor lipid-soluble components that have been shown to reduce eosinophil effector function (EEF) and increase eosinophil apoptosis (programmed cell death) in various invitro cellular assays at 100 ug/ml concentrations.

We will continue to develop this indication by progressing towards pre-clinical animal trials in Q3 2020, while simultaneously carrying out the assay work required to identify the components within the oil driving the modulation of EEF. We anticipate that this will lead to the initiation of phase 1 clinical trial work in asthma during 2021.

Eosinophils are white blood cells (leukocytes) which form part of the body’s immune system helping to deal with infections. Overactivity of eosinophils is seen in numerous inflammatory conditions including eosinophilic asthma. About 7-8 % of the population suffer from asthma. Eosinophils are estimated to be important drivers of asthma in around 40 % of asthmatics overall and in up to 60 % of patients with severe asthma. Inhaled bronchodilators (“relievers”), which expand the airways in the lungs, and inhaled corticosteroids, which reduce airway inflammation, are a mainstay of asthma treatment. However, a significant number of patients still suffer from asthma symptoms and exacerbations and are commonly referred to as steroid-resistant asthma patients. As such, additional treatment options targeting the underlying asthma disease process, especially those delivered orally, would be of significant benefit to patients.

About OmeGo®

OmeGo® contains the full spectrum of omega fatty acids including EPA, DHA and DPA offering benefits on human cholesterol levels including reduction of the CVD biomarker, oxLDL-GP1, for which HBC has global patent rights. Only OmeGo® contains all the lipid-soluble compounds found in fresh salmonid fish thus providing all the health benefits seen when consuming an oily fish-based diet. HBC uses its proprietary enzymatic hydrolysis technology to sustainably extract all the nutrients from the fish and transforms them into high value health products for human and pet consumption.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Dr. Crawford Currie, Medical R&D at Hofseth BioCare ASA
Phone: +44 7968 195497
E-mail: cc@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBD with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

The focus of the research collaboration is to further elucidate how SPH reduces or prevents intestinal inflammation in preclinical models of NEC and IBD and thereby helps to restore GI barrier function. In the second year of the project, it is anticipated that this work may form the basis for proceeding to a pilot study to assess SPH as an adjunctive treatment for the maintenance of remission in human subjects with mild to moderate ulcerative colitis.

Prior research undertaken by HBC and Stanford has demonstrated that gene systems that protect the GI tract against oxidative stress and inflammation are upregulated in human GI cells exposed to SPH. In proprietary animal models of GI inflammation, Stanford’s work has shown SPH to markedly reduce gut inflammation. Oxidative stress is implicated as an important underlying driver of many digestive diseases, including NEC and IBD.

IBD is a chronic disease that can affect both physical health and quality of life (QoL). Symptoms include crampy abdominal pain, diarrhoea and weight loss. Ongoing blood loss from the bowel can result in anaemia further exacerbating the impact on QoL with anaemia symptoms including fatigue and reduced exercise capacity. Long term effects of bowel inflammation include an increased risk of colon cancer. There are more than 70,000 new cases of IBD diagnosed each year in the US alone. Steroids and biologic therapies are commonly used treatments. Whilst these can provide significant benefit and are generally well tolerated, they are associated with side effects such as osteoporosis and diabetes with long term steroid use and serious infection with biologic therapy. Furthermore, a significant number of patients do not attain full remission and continue to suffer from the effects of IBD. There is therefore a clear need for further, well tolerated treatments which can help to attain and maintain remission for these patients.

For further information, please contact:
James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Dr. Bomi Framroze, Chief Science Officer at Hofseth BioCare ASA
Phone: +1 650 283 1196
E-mail: bf@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.
The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Mumbai, Menlo Park and Tokyo.
HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachment

• 200504 - Call for Annual General Meeting 2020

The share capital increase relating to the Private Placement has now been registered with the Norwegian Register of Business Enterprises. The share capital has been increased with NOK 3,253,370 through issuance of 3,253,370 new shares, each with a par value of NOK 1.

The new share capital is thus NOK 329,073,881 divided by 329,073,881 shares, each with a par value of NOK 1.

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA
HBC is a Norwegian biotech company that develops high-value ingredients and finished products from Norwegian salmon off-cuts. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future pharmaceutical clinical studies on the treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts and trimmings.

Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Menlo Park and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com

(Ålesund, 23 March 2020) Hofseth BioCare ASA ("HBC" or the "Company") announces that it has completed a private placement towards Chief Science Officer Dr. Bomi Framroze, through issuance of 3,253,370 new shares, at a price per share of NOK 6.73, which is 2% above the closing price on 20 Friday 2020 (the "Private Placement"). The Private Placement consequently raises approximately NOK 21.9 million in gross proceeds to the Company.

The Private Placement is resolved by the board of directors of the Company (the "Board") based on the authorization granted the Board by the general meeting of the Company on 30 August 2019, registered on 5 September 2019.

The Company considers the Private Placement beneficial in two respects. Bomi Framroze is an important member of the management of the Company, with competence and experience the Company requires in order to pursue stated strategies and achieve set targets. When Framroze is given the opportunity to subscribe for shares in the Company through the Private Placement, this is in accordance with the Company's practice in terms of incentivizing employees and other contributors to the Company's success. Secondly, the Private Placement will provide the Company with new capital to be used for working capital and general corporate purposes, and which will also serve to strengthen the Company's balance sheet.

Dr Bomi Framroze is a discovery research scientist with over 30 years of experience and more than 60 global patents and publications. His expertise in protein and enzyme science has been key to driving HBC’s product development and R&D. Central to the production of HBC’s products is a proprietary enzyme mix developed by Dr Framroze. When added to fish off-cuts (the remains of the fish after filleting) and mixed with water the enzyme hydrolysis cuts the protein into peptides (protein subunits), leaving the oil and bones untouched producing unprocessed, natural fish oil (OmeGo) and natural, marine collagen/calcium (CalGo). The peptides are then spray dried creating a powder (ProGo) of a multitude of peptides with varying biological effects. These effects are being systematically researched within HBC’s R&D programme.

Under Dr Framroze, key HBC R&D successes include the successful completion of the clinical trial programme of ProGo for the treatment of iron deficiency anaemia (IDA), preclinical work in collaboration with Stanford University with ProGo for the treatment of necrotising enterocolitis (NEC), a serious illness seen in preterm infants, and in vitro data in a phenotype of asthma where a component of the salmon oil has demonstrated a marked anti-inflammatory effect.

The clinical trial work of ProGo in IDA has resulted in both the granting of global patents for this clinical benefit and a label application to Health Canada, which is currently under review. If granted, HBC will be the first nutraceutical company to have a non-iron containing claim for the correction and prevention of IDA. Dr Framroze’s ongoing work has also identified a fraction of the bioactive peptides that drive much of the benefit in IDA. This provides the potential for HBC to encapsulate the peptides and move more towards a pharmaceutical rather than nutraceutical product.

The ongoing research work assessing the benefit of the ProGo peptides in gastrointestinal protection has demonstrated significant activity in a proprietary NEC animal model and work continues to identify the bioactive fraction of peptides driving this benefit. This could potentially enable enhanced dosing and further augmentation of the marked anti-inflammatory effect seen to date. Preclinical work continues in irritable bowel syndrome (IBS) and, as for NEC, HBC's ultimate aim is to develop the bioactive peptides as a pharmaceutical agent.

The Board is of the opinion that the Private Placement complies with the equal treatment obligations under the Norwegian Securities Trading Act and Oslo Børs' Circular no. 2/2014, in particular due to the fact that the Private Placement is directed towards a particular individual who holds a very important position in the Company and that his recent success and continued work on the projects described above is expected to be valuable for the Company and all its stakeholders. Further, the Private Placement involves a relatively limited dilution of existing shareholders, which the Board considers are justifiable when taking into account the expected contribution to the long-term success of the Company that the continued services of Bomi Framroze will contribute to. On this basis, the Board has considered the Private Placement to be in the common interest of the Company and its shareholders. As a consequence of the Private Placement structure, the shareholders' preferential rights were deviated from.

For the same reasons the Company will not carry out a repair issue directed towards shareholders that are not offered to participate in the Private Placement.

The new shares allocated in the Private Placement will be settled through cash payment, and the new shares shall be delivered as soon as practicable after full payment has been received and the new shares have been registered.

Following completion of the Private Placement, Bomi Framroze will directly and indirectly hold 5,000,000 shares in the Company.

Following registration of the new share capital pertaining to the Private Placement, the Company will have 329,073,881 shares outstanding, each with a par value of NOK 1.

For further information, please contact:

Roger Hofseth, CEO of Hofseth BioCare ASA
Phone: +47 951 47 941
E-mail: rh@hofseth-as.no

James Berger, Head of Investor Relations & Strategy at Hofseth BioCare ASA
Phone: +41 799501034
E-mail: jb@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products from Norwegian salmon off-cuts. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future pharmaceutical clinical studies on the treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts and trimmings.

Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Menlo Park and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Hofseth BioCare (“HBC”) has today signed a comprehensive distribution contract with Prinova Europe (“Prinova”). The agreement is a European exclusive distribution contract for branded marine products. With a unique and sustainable technology, HBC extracts key ingredients from salmonid fish as hydrolysed, soluble protein, calcium bone powder and oil. Prinova will distribute a diverse product range from Atlantic salmon based on HBC technology and preserved within hours of harvesting.

This agreement is an important step towards global distribution and fits well together with the work-in-progress on the distribution agreement with Nestlé-owned Garden of Life® for distribution of HBC products in the USA.

The products included in the distribution agreement are:

1. ProGo® Salmon Protein Hydrolysate; a soluble protein powder, which is a hydrolysed protein fraction with more than 97 % pure hydrolysed protein, suitable for sports, endurance and recovery nutrition, and may be used in powder formulations, bars, drinks and tablets.
2. CollaGo® Collagen Peptides: A soluble Type I & III Collagen Peptide powder good for skin, muscles and arteries. Recent studies have proven its benefit for beauty enhancement including hair, skin and nails; and also, for energy. It can be used in different formats including powders, bars, tablets and beverages.
3. CalGo® Marine Bone powder: a collagen calcium powder containing 24 % Type II Collagen, 19 % elemental Calcium, 9 % elemental Phosphorous. It supports joint cartilage function and heart health. It can be applied in tablets, powders and other formats.
4. OmeGo® Salmon Oil: a full spectrum of omega fatty acids oil including Omega 3, 5, 6, 7, 9 & 11, EPA, DHA, DPA, natural amounts of antioxidants, and no added chemicals for increasing stability. It is beneficial for maintaining healthy cholesterol and cardiovascular function. It can be formulated in soft gel caps and other formats.

The HBC product range is non-GMO, does not contain antibiotics, solvents, or chemicals and is highly sustainable with zero waste during production. It delivers easily absorbed bioactive peptides from HBC’s proprietary tailored enzymatic technology. HBC’s bioactive peptides are being developed into healthcare products for treating iron-deficiency anaemia, NEC/Irritable Bowel Syndrome and Sarcopenia.

According to ‘Research and Markets’, the Marine Collagen market is expected to reach US$ 895.7 Million by 2023, growing at a CAGR of 7.7% from 2020 to 2023.

Tony Gay, Head of Technical Sales & NPD at Prinova comments that: “we are very excited to represent Hofseth BioCare in the European market. With the combination of their high quality, innovative products and the trend on increased interest in sustainable marine ingredients, I feel their range is very in line with the latest trends. We are already working on concepts to show Hofseth BioCare ingredients in applications for; Beauty from Within, Exercise Recovery & Energy, Cardiovascular Support and Bone Health. These concepts will be available on our stand at Vitafoods exhibition in Geneva (Stand# G54) and customer meetings over the coming months.”

“HBC process is focused on sustainability and traceability concept. Optimal locations make it possible to deliver the freshest salmon products there is – using the whole Fish. With our traceability system and cooperation with our main suppliers, we are currently able to link the production process from fish eggs to final Products. HBC is also certified sustainable by Friend of the Sea and are the pioneer in the global market for turning fish off-cuts into high-value nutrition for humans and pets. We see a broad application for our products especially for dietary supplements, sports powders and beverages. We are transparent with companies and have scientific studies proving each product’s benefits for specific health conditions.” comments Roger Hofseth, CEO of HBC.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy at Hofseth BioCare ASA
Phone: +41 799501034
E-mail: jb@hofsethbiocare.no

Tony Gay, Head of Technical Sales & NPD at Prinova
Phone: +44 2073971086
E-mail: Tony.Gay@prinovaeurope.com

About Prinova

Since 1978, Prinova has been a leader in providing high-quality ingredients, flavours and value-added nutrient fortification products to the global food, feed and wellness industries. Prinova operates 6 plants and holds strategic stocks in 35+ distribution centres around the world to ensure continuity of supply and is the leading global supplier of Vitamin C, B and food grade Amino Acids. The company also has a team of application and technical specialists within their R&D and Quality Laboratory to help customers develop, improve, and enhance the taste and function of their products. Prinova’s facilities are BRC certified. The company’s main corporate office is in Carol Stream, Illinois with the European head office in the United Kingdom and a regional office in Canada. Additional regional offices are located throughout the United States as well as global sales associates in Mexico, Spain, Germany, Belgium, France, Australia, Turkey and China. For more information, visit Company’s website www.prinovaeurope.com

About Hofseth BioCare

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future pharmaceutical clinical studies on the treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Menlo Park and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Following this transaction, James Berger owns 2,132,835 shares corresponding to 0.65 % of the outstanding shares in Hofseth BioCare ASA and options for a further 6,486,400 shares according to the stock exchange notice of 18.10.2019.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Cash flow from operations during the fourth quarter was negative NOK 10.8m compared to positive NOK 46.2m in the same quarter last year. Cash and cash equivalents decreased by NOK 14.8m during the quarter, leaving total holding of cash and cash equivalents at NOK 94.6m by the end of the period.

Total assets for HBC were NOK 302.7m at the end of fourth quarter of 2019 (NOK 187.9m). Deferred tax assets are not posted in the balance sheet. Estimated value is NOK 141.0m. Total equity amounted to NOK 126.3m (NOK 86.0m) giving an equity ratio of 41.7 % (45.8 %) for the group.

UPDATE ON GOL

In the past 6 months, since execution of the LOI between Hofseth Biocare and Garden of Life, both parties have been engaged in formulation development, non-GMO certification, quality assurance approvals, product marketing and raw material forecasting.

Garden of Life is working with Hofseth Biocare and other partners to create approvable flavours, and with their retail partners to align on 2020 planogram slotting and determination of initial fill dates. Everyone is excited to launch these innovative salmon ingredients.

Hofseth Biocare has committed to Garden of Life that it will continue to develop new health claims that will help with product marketing and consumer satisfaction. Hofseth Biocare has also optimized salmon offcut supply chains in order to have sufficient raw material available for volumes above initial forecasts.

PRODUCTION UPDATE

In the fourth quarter of 2019, HBC Midsund processed 3,275 tons of salmon and trout raw materials. This is an increase of 662 tons compared to previous quarter, which is due to the summer break and the annual maintenance program for key components taking place in the plant in Q2. Compared to the same quarter in 2018, we have an increase of 625 tons (+23,6%). The reason for this increase is capacity improvements in the plant, as well as improved raw material access. A total of 914 tons of finished goods were manufactured at all HBC plants, compared to 791 tons in the same quarter 2018.

R&D

Situational anemia treatment: Our second placebo-controlled, randomized, double-blind eight-week clinical trial on daily supplementation with 12g of Salmon Protein Hydrolysate (ProGo®/CollaGo®) powder was completed with excellent primary and secondary outcome efficacy results and with no AE’s reported.

Gastro-intestinal (GI) protective medical food: This quarter we completed both the preclinical animal model as well as gene-regulation studies at Prof. Karl Sylvester's lab at the Stanford School of Medicine (SSM). The results were statistically positive, with ProGo®/CollaGo® (SPH) showing significant prophylactic protection of H2O2-induced injury of the GI tract in neonatal mice at a moderate 100 ug/ml SPH dose as well as significant upregulation of GI anti-inflammatory genes in GI tissue samples.

More detailed information on HBC's R&D work and pipeline can be found in the report.

HIGHLIGHTS IN THE FOURTH QUARTER 2019

• Garden of Life and Atlantic Sapphire projects are continuing to develop positively
• HBC finished our second placebo-controlled, randomized, double-blind eight-week clinical trial on treatment of situational anemia with strong results
• Completed both the preclinical animal model as well as gene-regulation studies on Reducing Gastrointestinal (GI) inflammation at Stanford School of Medicine
• In September, the HBC Berkåk facility ended toll manufacturing for an animal feed client and it was upgraded for food grade production, approval of which was granted by The Norwegian Food Authorities in October
• In October, HBC hired two new sales resources in Norway, Mr. Ove Brant-Hansen and Mr. Sindre Alnes
• In October, HBC also entered into a consultancy agreement with James Berger, through his company Nevera AG
• In October, HBC entered into a consultancy agreement with Dr. Crawford Currie to strengthen medical R&D and Investor Relations
  

Please find the Fourth Quarter 2019 Financial Report attached.

For further information, please contact:

James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachment

• HBC Q4 2019 Financial Report

The credit line is secured against HBC’s accounts receivables and inventory at competitive terms.

For further information, please contact:

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

As a result thereof, Yokorei has assumed ownership of the shares and thus become the owner of a total of 40,951,333 shares in Hofseth Biocare ASA, constituting 12.57% of the total number of shares and votes issued by the company.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

- “Utilizing the whole fish has been our vision since we founded HBC in 2009 and with our plants in Norway now running at stable, high volumes, a joint venture with Atlantic Sapphire is a right step in the direction of being a global producer of nutrition from fish off-cuts. Over the last couple of years, we have built unique IPR and competence ready to be applied both in different parts of the world and on different species,” Roger Hofseth, CEO of HBC, said.

- “Refining Atlantic Sapphire salmon off-cuts on-site into high quality products ensures that 100% of Atlantic Sapphire salmon is processed into value-added products. This development aligns with Atlantic Sapphire’s vertical integration and sustainability strategy. We see a large potential in developing the US market”, said Johan Andreassen, CEO of Atlantic Sapphire.

Atlantic Sapphire and HBC aim to enter into a definitive agreement in Q1 2020, begin limited production in Q4, 2020 and increase output once Atlantic Sapphire begins 20,000t (HOG) annual production.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
E-mail: joo@hofsethbiocare.no

Karl Øystein Øyehaug
Finance Director, Atlantic Sapphire AS
E-mail: investorrelations@atlanticsapphire.com

About Atlantic Sapphire AS
Atlantic Sapphire is pioneering BluehouseTM (land-raised) salmon farming, locally, and transforming protein production, globally. Atlantic Sapphire has been operating its innovation center in Langsand, Denmark since 2011 with a strong focus on R&D and innovation to equip the company with technology and procedures that enables the company to commercially scale up production in end markets close to the consumer.

In the US, the company has since 2010 worked to identify and permit the ideal location for BluehouseTM farming in Miami, Florida. The company is well underway with construction of its phase 1 build out which is projected to harvest approximately 10,000 tons of salmon annually, beginning in Q3, 2020. The company has also secured the key US water permits to produce up to 90,000 tons onsite, and a targeted harvest volume in 2031 of 220,000 tons.

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Cost of Goods Sold (CoGS) amounted to NOK 25.3m (14.3m) in the period. Operational profit (EBITDA) for the third quarter 2019 was negative NOK 7.6m (14.7m).

Cash and cash equivalents increased by NOK 89.5m during the quarter, leaving total holding of cash and cash equivalents at NOK 109.4m by the end of the period.

In the third quarter of 2019, the Midsund plant processed 2,613 tons of salmon and trout raw materials. Production was 4.8 % higher than the corresponding quarter 2018. The Berkåk plant produced 281 tons of finished protein products in the third quarter 2019, including the capacity lease manufactured products.

In the quarter, HBC R&D has focused on driving new biotech investigations forward for several indications within all three product fractions; Oil, Protein Hydrolysate and Bone Powder while still playing our role in process development research. We have continued our efforts in in-vitro experiment design and construction towards our other clinical treatment leads in: treating age-related Sarcopenia; pre-diabetic co-treatment; and retarding osteoporosis.

HIGHLIGHTS IN THE THIRD QUARTER 2019
- In July, HBC raised approximately NOK 118 million in gross proceeds through a Private Placement and approx. NOK 6 million in the following subsequent offering in Q4 at a fixed price per share of NOK 4. The participants in the Private Placement were private and institutional investors from the US, UK and Europe.
- In September, key management agreed to buy 11m shares in HBC from Hofseth International AS, trough Brilliant Invest AS
- A new sales person has been hired in Singapore with the increased focus on the Asian market, as well as a new sales partner in Denmark/Germany.

Please find the Third Quarter 2019 Financial Report attached.

For further information, please contact:
James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachment

• HBC Q3 2019 Financial Report

Dr. Currie is based in London and is a qualified surgeon, having practiced within the NHS for several years before moving his focus onto pharmaceutical development and commercialization at AstraZeneca and then onto pharmaceutical stock analysis and research at HSBC and New Street Research, before moving onto fund management at Millennium Capital.

Dr Currie's experience across medical, pharmaceutical and financial services places him in an exceptional position to interpret and contextualise for investors HBC’s products and its ongoing research and development efforts.

The consultancy agreement has an initial term of 36 months. Dr. Currie has at the same time indirectly purchased 750,000 shares at NOK 6.00 in HBC through a 6.82 % shareholding in Brilliant Invest AS. For further information about Brilliant Invest AS and its HBC shareholdings, please see https://newsweb.oslobors.no/message/485842

For further information, please contact:
James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Mr. Berger has already successfully assisted the HBC with its oversubscribed private placement of NOK 118 million that was directed towards international private investors and institutional funds. Ha has recently also facilitated the sale of additional shares in HBC from certain existing shareholders to new international investors.

Under the consultancy agreement, Mr. Berger will assist the HBC with certain intermediary services, in establishing a wider base of international investors. Mr. Berger and HBC believe that a wider investor base will facilitate a contemplated US Listing and a continued positive value development.

No decision has currently been taken whether actively pursue a listing on a US stock exchange, and the timing of such a potential listing has not yet been decided. However, HBC considers a listing on Nasdaq or another US stock exchange as an exciting opportunity for itself and its shareholders.

The US stock market has historically been a positive marketplace for biotech companies and HBC has recently achieved several positive test results on various scientific research studies carried out under our CSO, Dr. Bomi Framroze. For example, positive and very encouraging tests have been performed on developing a Gastro-Intestinal (GI) Protective medical food with collaborators at Stanford School of Medicine. Also, medical food to help treat age-related Sarcopenia, and future medical treatment of Anemia and NEC-IBS.

For further information about the HBC's scientific research, see HBC's Q2 report and the stock exchange notice dated 30 September 2019 (https://newsweb.oslobors.no/message/486187) and the following stock exchange notices from 2018 and 2019:

- 3 April 2019 (https://newsweb.oslobors.no/message/473598)
- 8 March 2019 (https://newsweb.oslobors.no/message/471557)
- 10 December 2018 (https://newsweb.oslobors.no/message/465383)
- 6 September 2018 (https://newsweb.oslobors.no/message/458862)

HBC is a fast growing consumer health business, specifically driven by strong demand for world leading natural, unprocessed marine oils, hydrolysed proteins and calcium. HBC expects that ongoing Scientific research and successful medical studies on the health benefits of its products will have a positive effect on sales and marketing, as well as laying the foundation for a promising pipeline of nutraceutical and pharmaceutical options in the future. This supports the rationale for a potential listing in the US.

Further information on agreements with James Berger

The consultancy agreement with Mr. Berger has been entered into for an initial period of 36 months, but with the right for HBC to terminate the agreement upon notice after 6 months.

Under the agreement, Mr. Berger will be granted a total of 6,486,400 share options in HBC (i.e. right to subscribe for approx. 2% of HBC's shares). A total of 4,862,800 share options shall vest and become exercisable when the volume weighted average price of shares over a period of 45 trading days reaches:

- NOK 8.00: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 12.50: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 16.50: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 21.00: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 25.00: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 42.00: 1,621,600 share options equal to approx. 0.5% of current share capital
- NOK 55 .00: 1,621,600 share options equal to approx. 0.5% of current share capital

The remaining 1,621,600 shares options (equal to approx. 0.5% of current share capital) shall vest and become exercisable when the market value of the HBC's shares reaches a valuation that facilitates the completion of a listing on a US stock exchange, however 810,800 of these share options shall vest at the date falling 9 months from the date of the consultancy agreement unless a listing on a US stock exchange has occurred before this.

Each share option gives Mr. Berger the right to acquire one (1) share in HBC at a price corresponding to NOK 0.01, which will be the new par value of HBC following a share capital reduction. A separate notice for an extraordinary general meeting in this respect will be distributed in due time.

In addition, Mr. Berger will be entitled to a market based cash compensation when the market value of the HBC's shares reaches a valuation that facilitates the completion of a listing on a US stock exchange.

HBC and Mr. Berger have today also entered into a separate agreement whereby Mr. Berger will be been granted a customary compensation for services recently delivered as described above.

James Berger is currently a minority shareholder of HBC and as of today holds 2,102,835 shares in HBC in addition to the share options described above.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.
HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Mr. Berger has already successfully assisted HBC with its oversubscribed private placement of NOK 118 million that was directed towards international private investors and institutional funds. He has recently also facilitated the sale of additional shares in HBC from certain existing shareholders to new international investors.

Under the consultancy agreement, Mr. Berger will assist HBC with certain intermediary services, in establishing a wider base of international investors. Mr. Berger and HBC believe that a wider investor base will facilitate a contemplated US Listing and a continued positive value development.

No decision has currently been taken whether actively pursue a listing on a US stock exchange, and the timing of such a potential listing has not yet been decided. However, HBC considers a listing on Nasdaq or another US stock exchange as an exciting opportunity for itself and its shareholders.

The US stock market has historically been a positive marketplace for biotech companies and HBC has recently achieved several positive test results on various scientific research studies carried out by Dr. Bomi Framroze at Stanford University School of Medicine. For example, positive and very encouraging tests have been performed on developing a Gastro-Intestinal (GI) Protective medical food. Also, medical food to help treat age-related Sarcopenia, and future medical treatment of Anemia and NEC-IBS.

For further information about the HBC's scientific research, see HBC's Q2 report and the stock exchange notice dated 30 September 2019 (https://newsweb.oslobors.no/message/486187) and the following stock exchange notices from 2018 and 2019:

- 3 April 2019 (https://newsweb.oslobors.no/message/473598)
- 8 March 2019 (https://newsweb.oslobors.no/message/471557)
- 10 December 2018 (https://newsweb.oslobors.no/message/465383)
- 6 September 2018 (https://newsweb.oslobors.no/message/458862)

HBC is a fast growing consumer health business, specifically driven by strong demand for world leading natural, unprocessed marine oils, hydrolysed proteins and calcium. HBC expects that ongoing Scientific research and successful medical studies on the health benefits of its products will have a positive effect on sales and marketing, as well as laying the foundation for a promising pipeline of nutraceutical and pharmaceutical options in the future. This supports the rationale for a potential listing in the US.

Further information on agreements with James Berger

The consultancy agreement with Mr. Berger has been entered into for an initial period of 36 months, but with the right for HBC to terminate the agreement upon notice after 6 months.

Under the agreement, Mr. Berger will be granted a total of 6,486,400 share options in HBC (i.e. right to subscribe for approx. 2% of HBC's shares). A total of 4,862,800 share options shall vest and become exercisable when the volume weighted average price of shares over a period of 45 trading days reaches:

- NOK 8.00: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 12.50: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 16.50: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 21.00: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 25.00: 324,320 share options equal to approx. 0.1% of current share capital
- NOK 42.00: 1,621,600 share options equal to approx. 0.5% of current share capital
- NOK 55.00: 1,621,600 share options equal to approx. 0.5% of current share capital

The remaining 1,621,600 shares options (equal to approx. 0.5% of current share capital) shall vest and become exercisable when the market value of HBC's shares reaches a valuation that facilitates the completion of a listing on a US stock exchange, however 810,800 of these share options shall vest at the date falling 9 months from the date of the consultancy agreement unless a listing on a US stock exchange has occurred before this.

Each share option gives Mr. Berger the right to acquire one (1) share in HBC at a price corresponding to NOK 0.01, which will be the new par value of HBC following a share capital reduction. A separate notice for an extraordinary general meeting in this respect will be distributed in due time.

In addition, Mr. Berger will be entitled to a market based cash compensation when the market value of the HBC's shares reaches a valuation that facilitates the completion of a listing on a US stock exchange.

HBC and Mr. Berger have today also entered into a separate agreement whereby Mr. Berger will be been granted a customary compensation for services recently delivered as described above.

James Berger is currently a minority shareholder of HBC and as of today holds 2,102,835 shares in HBC in addition to the share options described above.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.

HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

The section “Declaration by the Board of Directors and CEO” is missing from the issued version.

The financial report with the declaration included is attached this notice.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachment

• Q2 2019 Financial Report

The share capital increase related to the Subsequent Offering has now been registered with the Norwegian Register of Business Enterprises. The share capital has been increased with NOK 1,500,000 through issuance of 1,500,000 new shares, each with a par value of NOK 1. The new share capital is thus NOK 325,820,511 divided by 325,820,511 shares, each with a par value of NOK 1.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that discovers and develops high-value therapeutic medical foods and nutraceutical ingredients from marine resources. HBC has developed a successful research paradigm based on its unique process and marine raw materials, which allows it to rapidly discover and define unique, IP-protected medical co-therapies.

HBC leverages its global relationships with academic and clinical organizations, to help focus and speed-up proof-of-concept discovery studies that drives purposeful, rapid pre-clinical and clinical development.
Several leads are in pre-clinical and clinical development towards co-therapeutic medical foods that will, improve gastro-intestinal (GI) health in various Irritable Bowel Syndromes, help reverse age-related Sarcopenia, reduce the symptoms of asthma and improve hemoglobin status in situationally (iron-deficient) anemic individuals.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh marine resources.
Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Menlo Park and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

With this patent, HBC now holds the IP on hydrolysis processing of not only salmon off-cuts but all fish species. This lays the foundation for HBC to lead the development of high-end protein extraction of fish off-cuts and create a new platform for growth in the coming years. The result of the method is higher quality aquatic protein hydrolysates, having very low oxidation, improved organoleptic profile and improved biological activity of interest, especially for human consumption and cosmetics.

This is important in the long-term strategy on differentiating our protein hydrolysates from conventional protein products to human health.

The patent has already been approved by the Norwegian patent authorities. Hofseth BioCare are continuing to pursue this patent application in other major jurisdictions globally, including Canada, USA, Chile, Peru et al.

For more information, please contact:
Roger Hofseth, CEO of Hofseth BioCare ASA
Mob: +47 95147941
E-mail: rh@hofseth-as.no

Jon Olav Ødegård, CFO Hofseth BioCare ASA
Mob.: +47 93632966
Email: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBS with Salmon Protein Hydrolysate fractions.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

The Program is structured through a joint holding company for the participants in the Program, named Brilliant Invest AS ("Brilliant Invest"). Brilliant Invest has today purchased a number of 11,000,000 shares in the Company from Hofseth International AS ("HI") at a price per share of NOK 4.50. The Program is expected to have a duration of three years, following which the HBC shares held by Brilliant Invest will be divested and the remaining assets of Brilliant Invest will be distributed to the Participants.

The purchase price payable from the Participants to HI will partly be settled by HI's grant of a seller credit and partly in cash by Brilliant Invest.

The Participants include Jon Olav Ødegård (CFO), Kai Morten Thuen (Chief Marketing Officer), Bomi Framroze (Chief Scientific Officer), Leif Arne Giske (Accounting Manager), Angelika Florvaag (Quality Manager), Ola Holen (chairman), Torill Standal Eliassen (director), Christoph Baldegger (director), Henriette Godø Heggdal (Lab Manager and director) and 6 other key employees.

Following the sale of 11,000,000 shares in HBC to Brilliant Invest, HI and its related parties own 58,881,778 shares in HBC, corresponding to 18.16 % of the outstanding votes and shares in the Company. Prior to the transaction, HI and its related parties held 69,881,778 shares, corresponding to 21.55 % of the outstanding votes and shares in the Company.

This information is subject to the disclosure requirements pursuant to Sections 5-12 and 4-3 of the Norwegian Securities Trading Act.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market. Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Menlo Park, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare

The subscription period for the Repair Issue ends today, 16 September 2019 at 16.30 hours (CEST). Subscription rights that are not utilized within the end of the subscription period will lapse automatically and hold no value.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.

Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Palo Alto, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

The Subsequent Offering comprises an issuance of up to 1,500,000 new shares in the Company (the "Offer Shares"), each with a par value of NOK 1, and at a subscription price of NOK 4 per share, resulting in gross proceeds of up to NOK 6,000,000.

The Subsequent Offering will be directed towards Eligible Shareholders, being the Company's shareholders as of close of trading on 24 July 2019, as registered in the VPS on 26 July 2019, who were not invited to subscribe for shares in the Private Placement, and who are not resident in a jurisdiction where such offering would be unlawful or (other than Norway) would require any filing, registration or similar action (the "Eligible Shareholders").

The Eligible Shareholders will be granted approximately [0.045] subscription rights (the "Subscription Rights") per share held as of 24 July 2019, as registered in the VPS on 26 July 2019. Each Subscription Right will give a preferential right to subscribe for and be allocated one Offer Share. The number of Subscription Rights granted to each Eligible Shareholder will be rounded down to the nearest whole number of Subscription Rights.

The subscription period in the Subsequent Offering commence today, 2 September 2019 at 09.00 CEST, and expire on 16 September 2019 at 16.30 CEST.

Allocation of subscribed Offer Shares will be made by the Board of Directors on the basis of exercised Subscription Rights. Over-subscription will be allowed. Subscription without Subscription Rights will not be allowed.

Further information about the Subsequent Offering, including a subscription form to be used for subscription of Offer Shares, is set out in an Invitation Letter prepared by the Company. The Invitation Letter is enclosed to this Stock Exchange Notice and will also be distributed to each Eligible Shareholder.

For further information, please contact:
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.
Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Palo Alto, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachment

• Invitation Letter - Hofseth BioCare ASA

Cost of Goods Sold (CoGS) amounted to NOK 6.8m (11.8m) in the period. Operational profit (EBITDA) for the second quarter 2019 was negative NOK 8.4m (12.9m).

Cash and cash equivalents decreased by NOK 16.6m during the quarter, leaving total holding of cash and cash equivalents at NOK 19.9m by the end of the period.

In the second quarter 2019, HBC Midsund processed 3,061 tons of salmon and trout raw materials, which is 91 tons less than previous quarter. However, we processed 487 tons more than the same quarter previous year (an increase of 18,9%).

Raw material availability from our core suppliers is good and increasing. We expect the processed raw material to continue increasing during 2019.

In the second quarter, we tested ProGo® powder given orally to GI damaged mice that mimic necrotising enterocolitis (NEC) in Stanford University specially developed mouse model. The results were positive and very encouraging. The Stanford University is now running a formal statistically powered, POC preclinical trial.

HIGHLIGHTS IN THE SECOND QUARTER 2019

- The single largest order of Brilliant® Salmon Oil was received in April and the bottles will be shipped to the customer in Shanghai in April. The total volume of Brilliant® sold in 2019 has now surpassed the total volumes sold from launch in 2016 to end of 2018.

- In June, HBC entered into a Letter of Intent with Florida-based and Nestlé-owned Garden of Life® for sales of HBC products in the USA. The LOI states that as soon as the final organoleptic tests are done, the parties envisage entering into a long-term agreement to develop a close collaboration on developing the world market for HBC's products.

- Positive and very encouraging tests have been done at Stanford University School of Medicine on ProGo® powder given orally to GI damaged mice that mimic necrotizing enterocolitis (NEC) to show that ProGo® powder was able to protect human gastrointestinal cells from oxidative damage. The Stanford lab is now running a formal statistically powered, POC preclinical trial and successful results will lead to a significant publication and breakthrough on our path towards an adjuvant treatment for GI protection in inflammatory diseases, starting with NEC.

Please find the Second Quarter 2019 Financial Report attached.

For further information, please contact:

Roger Hofseth, CEO of Hofseth BioCare ASA
Mob: +47 95147941
E-mail: rh@hofseth-as.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.

Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachment

• HBC Q2 2019 Financial Report

All proposals were approved per the attached minutes.

For further information, please contact:

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.

Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachment

• HBC EGF protokoll 190830