Hofseth BioCare's Growth Hinges on Delayed NOK 158M Capital Injection

ÅLESUND, NORWAY – March 27, 2026 – Hofseth BioCare ASA (HBC) has released its 2025 annual and sustainability reports, showcasing a year of strategic progress and significant growth in key business segments. However, the positive operational news is tempered by the announcement of a significant delay in finalizing a NOK 158 million share placement, creating a critical financial question mark for the company's immediate future.

The biotech and nutraceutical firm, listed on the Oslo Børs, confirmed that the capital injection, first announced in October 2025, has yet to be completed. The company now anticipates the transaction will close in the second quarter of 2026, attributing the hold-up to unspecified "technical and legal issues" concerning the main investor. This delay casts a shadow over the company's balance sheet, even as its underlying business of converting salmon by-products into high-value health ingredients shows increasing momentum.

A Balance Sheet in Waiting

A detailed review of the 2025 annual report reveals a company at a pivotal moment. Hofseth BioCare reported total operating revenues of NOK 256.3 million for the year, a slight dip from NOK 265.5 million in 2024, a figure which was inflated by an asset sale. More revealing is the operational EBITDA, which improved to a negative NOK 39.5 million from a negative NOK 40.4 million the prior year, suggesting a move toward greater efficiency.

The company's cash position at the end of 2025 stood at NOK 67.1 million. While this is a substantial increase from the NOK 25.6 million held at the end of 2024, the delayed NOK 158 million represents more than double its current cash reserves. The press release explicitly stated the proceeds will "materially strengthen the Company's balance sheet and support ongoing growth momentum." The absence of these funds puts pressure on the company's ability to fully capitalize on recent successes.

Those successes were particularly evident in the fourth quarter of 2025. The Human Nutrition B2B segment saw revenues skyrocket by 300% year-on-year, fueled by strong demand for its flagship ingredients ProGo® and CalGo®. The delay in capital could constrain the company's ability to scale production and inventory to meet this accelerating demand and fund further market expansion.

Innovation from Upcycled Salmon

Despite the financial uncertainty, Hofseth BioCare's core mission remains a compelling story of sustainability and scientific innovation. The company has built its business on upcycling the side streams of the Norwegian salmon industry, transforming what was once waste into patented, scientifically validated ingredients for human and pet health.

This circular economy model is central to its identity, as detailed in its 2025 Sustainability Report. The company's main products target major segments of the health and wellness market:

• ProGo®: A mix of bioactive peptides and collagen, which studies have shown can improve iron metabolism, boosting energy and vitality. It has also demonstrated an ability to activate the GLP-1 receptor, a mechanism associated with weight management.
• OmeGo®: A whole salmon oil that provides a full spectrum of fatty acids. Research has linked it to immune health benefits, including improved respiratory health and better sleep.
• CalGo® / NT-II®: A salmon bone powder containing natural calcium hydroxyapatite and undenatured type II collagen. This ingredient is aimed at the booming bone and joint health market, supporting healthy aging and active lifestyles. The company recently received IRB approval to begin a clinical study on NT-II® for joint health.

This commitment to scientific validation is a key differentiator in the crowded nutraceuticals market. By securing patents and publishing peer-reviewed studies, Hofseth BioCare provides a level of credibility that is increasingly demanded by consumers and business partners. This foundation has enabled its expansion into new markets, recently gaining regulatory access in Australia and South Korea.

Venturing into Biotech's High-Stakes World

Beyond its core ingredients business, Hofseth BioCare is pursuing a high-growth, high-risk strategy through its biotech spin-out, HBC Immunology (HBCI), which operates through AecorBio Inc. This venture aims to leverage the company's deep understanding of marine-derived molecules to develop novel therapeutics for serious diseases.

The pipeline is ambitious and has attracted external financing. The lead program is focused on developing a treatment for prostate cancer, with a secondary program targeting ovarian cancer. A separate molecule is being developed as a potential oral, steroid-sparing therapy for asthma. Progress was noted in the Q4 2025 report across these programs, indicating active development.

This diversification into pharmaceuticals represents a significant long-term value proposition, but also a capital-intensive one. The success of these programs is not only dependent on scientific breakthroughs but also on consistent and substantial funding. The delayed share placement underscores the financial challenges inherent in supporting such a dual strategy of a growing ingredients business alongside a nascent biotech operation.

While the company has expressed confidence that the main investor remains committed and the transaction will be completed swiftly, the market will be watching closely. The successful closure of the NOK 158 million placement in the coming months is not just a line item on a balance sheet; it is a critical enabler for both the company's immediate commercial expansion and its long-term vision of becoming a major player in both sustainable nutraceuticals and marine-based biotechnology.