Brief: Hofseth Biocare Launches Private Placement, Consolidates Its Factories, Improves Production Process And Reduces Its Production Costs

Hofseth Biocare ASA

19/06/2018 06:06

June 19 (Reuters) - Hofseth Biocare ASA  HOFBC.OL :
    * REG-HOFSETH BIOCARE ASA: HBC LAUNCHES PRIVATE PLACEMENT
FROM NOK
120 TO 140 MILLION, CONSOLIDATES ITS FACTORIES, IMPROVES THE
PRODUCTION PROCESS AND REDUCES ITS PRODUCTION COSTS
    * EXPECTED PAYBACK ON INVESTMENT IN MIDSUND PLANT IS
ESTIMATED TO
LESS THAN THREE YEARS
    * FIRST EXTENSION IS EXPECTED TO BE IN OPERATION DURING
SUMMER
2018 AND SECOND IN Q3 OF 2019
    * SUBSCRIPTION PRICE ( "OFFER PRICE") IN PRIVATE PLACEMENT
IS SET
AT NOK 2.25 PER SHARE
    * EXPECTS TO INCREASE ITS INTAKE OF SALMON RAW MATERIAL
DURING
2018
    * APPLICATION PERIOD FOR PRIVATE PLACEMENT IS EXPECTED TO
START AT
09:00 CET ON 19 JUNE 2018
    * EXPECTS HIGHER GROSS MARGINS AND POSITIVE EBITDA DURING Q3
    * APPLICATION PERIOD FOR PRIVATE PLACEMENT IS EXPECTED TO
CLOSE ON
OR ABOUT 16:30 CET ON 22 JUNE 2018
    * PLANS TO INVEST NOK 40 MILLION IN TWO PLANT EXTENSIONS TO
ITS
CURRENT FACILITIES AT MIDSUND
    * WILL PURCHASE AND IMPLEMENT A NEW SPRAY-DRYER FOR
HIGH-VALUED
HUMAN NUTRITION PROTEIN PRODUCTS.
    * WILL RENT OUT 100% OF CAPACITY AT BERKÅK ONCE UPGRADE AT
MIDSUND
IS COMPLETED.
    * EXPECTS NEW CALCIUM PRODUCTION LINE TO BE OPERATIONAL
DURING Q3
2018
    * EXPECTS ALL CURRENT PRODUCTION TO HAVE MOVED FROM BERKÅK
TO
MIDSUND WITHIN 1 JANUARY 2020
    * TRANSACTION INCLUDES DEBT CONVERSION OF NOK 65.8 MILLION
IN
TRADE RECEIVABLES FROM PURCHASE OF RAW MATERIAL.
    * AFTER TRANSACTION COMPANY WILL HAVE A TOTAL OF NOK 56.0
MILLION
IN INTEREST BEARING DEBT
    * EXPECTS NEW CALCIUM PRODUCTION LINE TO BE OPERATIONAL
DURING Q3
2018
    * EXPECTS ALL CURRENT PRODUCTION TO HAVE MOVED FROM BERKÅK
TO
MIDSUND WITHIN 1 JANUARY 2020
    * NEW SPRAY-DRYER AT MIDSUND, IS EXPECTED TO BE INSTALLED
EARLY Q3
2019 AND OPERATIONAL IN LATE 2019

Source text for Eikon:  ID:nGNE90kJcX 
Further company coverage:  HOFBC.OL 

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