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Salmon oil produced by Hofseth BioCare. (Photo: Hofseth BioCare )
Hofseth BioCare to invest USD 4.9 million to boost production
(NORWAY, 6/19/2018)
Leading Norwegian producer of healthy and high-value nutritious products from fish offcuts Hofseth BioCare ASA (HBC) has decided to expand its current capacity at the Midsund Process Facility in order to optimize its current production process and to meet the increase in demand for its products.
Accordingly, HBC informed it will continue renting out available capacity at one of its current production facilities at Berkåk, and invest about NOK 40 million (USD 4.9 million) in two plant extensions at Midsund in the second half of the year.
The company expects payback on the investment in the Midsund plant is estimated to less than three years, and the first extension is expected to be in operation during summer 2018 and the second in the third quarter of 2019.
The following shareholders have entered into pre-commitment agreements with the company to subscribe for shares in the Private Placement for a total of NOK 120.4 million: Alliance Seafoods Inc. (17.1), Bonafide (25.0), Hofseth Aalesund AS (10.9), Hofseth AS (24.7), Hofseth International AS (1.3), Hofseth Logistics AS (2.2), Chairman Ola Holen (0.5), CEO Roger Hofseth through Roger Hofseth AS (23.0), Hofseth North America partner Matt Mixter through Norinvest, LLC. (1.2), Seafood Farmers of Norway AS (13.7), and other investors (0.7).
The application period for the Private Placement, which will be directed towards existing shareholders as well as potential new investors in Norway and internationally, is expected to start on June 19 and to close on June 22 this year.
The company will announce the result of the Private Placement through a stock exchange notice expected to be published on or about June 25.
The Board will propose to conduct a subsequent offering of up to NOK 20 million (USD 2.45 million) at the same subscription price as in the Private Placement.
The company processed 2,662 metric tons of salmon and trout raw material in the first quarter this year, resulting in 1,092MT of finished goods.
HBC had sales revenues of NOK 14.8 million (USD 1.8 million) in the same quarter. Operational profit (EBITDA) for the first quarter 2018 was negative NOK 14.9 million (USD 1.82 million).
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Information of the company:
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Address:
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Stormyra Industriområde
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City:
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Midsund
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State/ZIP:
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(NO-6475)
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Country:
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Norway
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Phone:
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+47 66 76 55 60
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Fax:
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+47 66 76 55 62
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E-Mail:
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[email protected]
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More about: 
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