Aqua Bio Technology ASA – completion of acquisition of Cosmed Beauty AS and Ultrabody AB

Reference is made to stock exchange announcement 28 June 2022.

The Due Diligence process has been completed and the board of ABT has unanimously chosen to complete the acquisition of Cosmed Beauty AS and Ultrabody AB.

By combining ABT's position as a product supplier with Cosmed Beauty AS and Ultrabody AB's capacity in distribution, ABT controls a very profitable value chain from production, distribution, to end users in Norway and Sweden.

Production and distribution of skincare products is a very profitable industry, but there are also low barriers to entry for new players. There are a large numbers of skincare distributors in the Nordic market and ABT sees great consolidation opportunities in this market. Adapting to these opportunities will be beneficial for ABTs investors.

Cosmed and Ultrabody is heading for a turnover of 17-18 MNOK in 2022 with an EBITDA of around 4-5 MNOK. The budget for Cosmed Beauty AS and Ultrabody AB shows an increasing EBITDA margin and yearly average growth rate of more than 50% p.a. for the years 2022 to 2027. As a consequence of the acquisition, Cosmed and Ultrabody's financial results will become consolidated financial statements in ABT from August 2022.

From August 2022, Cosmed Beauty and Ultrabody will also offer nutrition products from Hofseth BioCare ASA in Norway and Sweden in addition to skincare products. "Beauty from within" is a big trend among skincare distributors and this expects to contribute positively to Cosmed Beauty and Ultrabody`s revenue growth.

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For further information, please contact CEO Håvard Lindstrøm mobile phone +47 941 32 288.

Aqua Bio Technology (ABT) is developing and commercializing sustainable biotechnology for use in skincare products. ABT's cosmetics ingredients are highly effective and they provide the cosmetics industry with natural alternatives to traditional ingredients. ABT is also marketing and distributing natural skincare products developed by partners towards consumers and professional users. ABT's focus on commercialization and development of natural ingredients and natural skincare products has been, and will continue to be, an important part of the Company's strategy going forward. Aqua Bio Technology is listed on the Euronext Expand market of the Oslo Stock Exchange.