The new B shares will not have any voting rights.
Norwegian biotech company Hofseth BioCare (HBC) has announced the conversion of debts of NOK 144 million ($13.4 million) owed to salmon processing company Hofseth International into shares.
This means that Hofseth Biocare will not have to pay what the company owes Hofseth International for delivery of salmon heads, spines and skins.
This investment will be made through the issuance of a new class of preference shares (“B-Shares”) to Hofseth International at a subscription price of NOK 9 per B-Share, the company announced on Wednesday.
Jon Olav Ødegård, CEO of HBC, commented on the transaction, stating it marks a significant milestone and capital restructuring for HBC. He emphasized that this move would substantially reduce liabilities, boost equity ratios, and strengthen the balance sheet, increasing stakeholder confidence in the company. He also highlighted the potential for further growth with continued support and streamlined regulation.
The transaction is contingent upon approval at an HBC extraordinary general meeting scheduled for January 4, 2024, and subsequent registrations with the Norwegian Registry for Business Enterprises and Euronext Securities Oslo (VPS). The company has already secured voting commitments from shareholders representing the majority needed to approve the transaction.
The B-Shares will not have voting rights and will carry preferential rights to dividends over the company’s ordinary shares.
Hofseth BioCare ASA is a prominent player in the field of consumer and pet health ingredients and pharmaceutical drug development. Based in Ålesund, Norway, HBC operates with a focus on sustainable utilization of natural resources.
Hofseth International already owns around 15% of Hofseth Biocare, according to the Holdings service. Roger Hofseth owns 18% of the company.
In July, Roger Hofseth stepped down from his position as CEO of HBC, handing control of the company over to Jon Olav Odegard, who had been company’s chief financial officer.
