23.7.2023 22:13:34 CEST | Aqua Bio Technology ASA | Inside information

Aqua Bio Technology ("ABT or the "Company") has today, on 23 July, entered into
a binding agreement in principle (the "Agreement ") with the Norwegian company
Skinteam Norge AS ("Skinteam") and its owners regarding the Company's
acquisition of all shares in Skinteam. The purchase price will be MNOK 45. The
purchase price will be used to subscribe for new shares in ABT at a subscription
price of NOK 3.

About Skinteam:

Skinteam is a retail chain that targets independent skin care and hairdressing
salons with "one stop shop" solutions. Skinteam offers a fully integrated
operating system for independent salons: online store, membership club, sales
training, product training, advertising, AI app and high-quality products. The
company was built up by the SATS founders Per Egil Borge and Bjørn Sigurd
Johansen. Skinteam offers independent salons a range of services, enabling them
to improve profitability without Skinteam assuming risk on the salons'
operational side.

Skinteam is today the largest player in Western Norway in skincare, with 3
wholly owned salons and close cooperation with 12 independent partner salons. In
total Skinteam currently has 15 skin and hairdressing salons.

All affiliated salons undertake to have Skinteam as the main supplier of
products, where appr. 80% of sales over the counter and 100% of professional
products used in treatment are purchased from Skinteam and where all income is
channeled through Skinteam centrally and paid to the partner salons in arrears
enabling Skinteam to capitalize on the growth in line with the salons' results
while taking limited liquidity risks.

 * We are happy to become a central part of an exciting group with financial
   muscles, wide network and a very interesting product portfolio. We, for our
   part, together with our partners, will ensure provision for ABT's various
   product series in a system of paid membership from consumers according to the
   SATS model, nationally and internationally. We will grow quickly and by 2025
   welcome 100 skincare salons and 200 hairdressing salons, all of whom will,
   like those who are already members, experience positive development and safe
   operation and future, says Per Egil Borge.

Unique member club:

Skinteam today has more than 1,000 paying members according to the model that
was developed in SATS. The memberships are either basic memberships or
memberships that include monthly treatments - at a higher price. All memberships
have a commitment period of 12 months, and are used across the verticals.
Membership gives Skinteam and the partner salons significantly more income while
the members' club provides valuable and increasing recurring income for
Skinteam.

Technological focus:

In general, in the wellness industry, there has been limited thinking and use of
digital innovation. Skinteam is developing a separate app where, among other
things, all club members, salons, salon customers, therapists, offers and
products will be part of the same ecosystem. This is estimated to be ready for
rollout in Q3 2023. This will be filled with content and continuously expanded
with new functions. In addition, Skinteam has developed an AI Skincare app. The
AI analysis technology, through a scanning, processes a unique and personalized
product program. The results are sent directly to the customer digitally.
Purchases in this way corresponds to consumption for 3 months, and the
additional sales of product kits for the salons increase significantly. The
AI-based skin and hair advice combined with product sales is creating a more
personalized shopping experience.

 * Skinteam believes that our technology, combined with ABT's financial muscles
   and ranges of product series will be a game changer in the market, says Per
   Egil Borge.

ABT and Skinteam:

With the acquisition of Skinteam, ABT becomes a main producer and supplier of
the entire value chain within all of Skinteam's skincare salons and hair care
salons. ABT is confident that it will also be able to source, produce and supply
high quality hair care products to Skinteam's value chain for the hair salons.
ABT is thus entering a new market which is both large and lucrative.

ABTs CEO Håvard Lindstrøm says:

 * This is a milestone for ABT, Skinteam and their combined shareholders. With
   this acquisition, ABT establishes itself as a major supplier and distributor
   in both skincare and hair care in Norway. The acquisition is part of ABT's
   consolidation strategy and will be strategically correct for both companies
   as Skinteam has strengths as an innovative distributor while ABT holds and
   provides valuable IPR and cosmetic ingredients, controls the production of
   its product series and will over time supply Skinteam with all the products
   that its needs. The ambition is to establish ourselves as a major and
   important player in the Nordic region during 2024. Together, we are building
   a larger distribution network that will be profitable in itself, but also
   interesting for other players in skin and hair care.

ABT expects that the acquisition will impact the forward-looking statements for
2023 as follows: 

 * Skinteam's revenues as of 30 June was above 25 MNOK and following the
   acquisition it is expected that ABT, Cosmed Beauty and Skinteam will have
   more than 100 MNOK in revenue on 12 months rolling basis from August 2023.
 * During the same period it is expected that both ABT, Cosmed Beauty and
   Skinteam will reach a positive EBITDA.

 

Strategy going forward:

ABT will continue to establish new agreements with third-party distributors in
the Nordics and the global market while continuing to assess the consolidation
opportunities as highlighted below.

 

Consolidation opportunities in the market:

Production and distribution of skincare products is a profitable industry, but
there are also low entry barriers for new brands and skincare retailers. The
Nordic cosmetic market is fragmented with many skincare retailers and pursuing
consolidation opportunities for further growth may therefore be beneficial for
ABT and its shareholders.

****

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.

DISCLOSURE REGULATION

This information is subject of the disclosure requirements pursuant to section
of 5-12 of the Norwegian Securities Trading Act.

CONTACTS

 * Håvard Lindstrøm, 004794132288, hl@aquabiotech.no 

ABOUT AQUA BIO TECHNOLOGY ASA

Aqua Bio Technology (ABT) is developing and commercializing sustainable
biotechnology for use in skin care 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 skin care products developed by partners towards consumers and
professional users. Aqua Bio Technology is listed on Euronext Expand.

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