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Borregaard ASA: Alginor faces a challenging financial situation

Written by Customer Service on . Posted in Public Companies.

In recent months, Alginor has seen challenges with raw material supply, delayed product development and commercialisation, and additional cost overruns in the demonstration plant investment. As of now, Alginor is not positioned to realise the potential of the demonstration plant investment.

To secure continued operations, the company has frozen the investment in the demonstration plant and decided to implement temporary layoffs. The aim is to develop a revised strategy and assess its feasibility. Going forward, the company will use its pilot plant to investigate and evaluate the potential for product development, commercialisation, and solutions for raw material supply and harvesting.

In this process, Borregaard – together with the largest shareholders – have made available a further NOK 100 million in liquidity on subordinated terms under Alginor’s convertible loan frame.

Borregaard’s book value of its investment in Alginor as of 31 March was NOK 292 million, of which NOK 110 million was related to the convertible loan. An impairment of Borregaard’s book value is likely, and an update will be given at Borregaard’s second quarter presentation on 16 July at the latest.

For more information about Alginor and the financial situation, please see https://alginor.no/investors/reports-information/ .

Contact:

Director Investor Relations, Pål Espen Ramberg, +47 959 17 333

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

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