Aqua Bio Technology ASA has decided to expand the Company's business to also
include marketing and sales of third party products to consumers and
professional users. Until today, ABTs business has been limited to the
development and sales of ingredients to the cosmetics industry.
The Company will continue its development and marketing of ingredients, while
also establishing Aqua Bio Technology as a complete commercial center for
sustainable technology aimed at skincare products and dietary supplements.
The change represents the third step in the development of Aqua Bio Technology.
The first step was the commercialization of ABT's proprietary technology. In
this initial step, a U.S. based skin care company was granted exclusivity to
ABT's lead ingredient Aquabeautine XL(TM). In step 2, ABT evolved into a center
for commercialization of third party ingredients to the cosmetics industry. The
Company has established partnerships with several technology owners and is in
the process of adapting and commercializing new ingredients for skin care
products. Additional partnerships in this segment are expected, and the first
ingredients will be launched in the market early 2017.
In the third step, ABT will, based on partnerships, market finished products
directly to consumers and professional users. ABT's partners will be product
owners and manufacturers already present in the market. ABT's contribution is to
strengthen the commercial potential of these products in designated territories,
mainly Europe and the Middle East.
"Going forward, ABT will operate in two business areas: ingredients and consumer
products. The common denominators are sustainable biotechnology and the focus on
skincare and dietary supplements," said ABT's CEO Arvid Lindberg.
Aqua Bio Technology sees a strong rationale for the expanded business model.
"It represents reduced risk through diversification and a stronger revenue
potential through an expanded market footprint. We will control more of the
value chain, and the expanded business model also enables economies of scale.
Furthermore, the business model represents a better utilization of ABT's
expertise and capabilities," Arvid Lindberg said.
ABT's business model remains mainly royalty based, in the sense that the
Company's up-front payments are minimal, while partners receive royalty when
products are being sold in the market. The Company's expansion of the business
model does, therefore, not call for major investments.
Aqua Bio Technology has been negotiating with several brand owners and
manufacturers over the last months, and expects to announce new partnerships
shortly.
For further information, please call Arvid Lindberg, CEO, telephone
+47 9824 5410
Aqua Bio Technology (ABT) has launched several cosmetic ingredients used in skin
care products globally. Skin care is the fastest growing segment in the
cosmetics industry, where ABT's ingredients have established a foothold. In
addition to ingredients from its own technology, ABT also commercializes novel
technologies/ingredients for partners, for use in skin care products. Aqua Bio
Technology is listed on the Axess market of the Oslo Stock Exchange.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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