Aqua-Spark, a sustainable aquaculture investment fund, has purchased a 4 percent stake in Norwegian biotech company Hofseth Biocare ASA (HBC).
Ålesund, Norway-based HBC develops high-value ingredients and finished products from farmed salmon byproducts for the consumer health market.
Aqua-Spark purchased a roughly EUR 10 million (USD 11.6 million) stake in the HBC, paying NOK 8.10 (USD 0.95, EUR 0.82) per share of the publicly-trade company which is traded on the Oslo Stock Exchange. Its share price rose to NOK 7.00 (USD 0.82, EUR 0.71) on Thursday, 4 November, after the news was released.
"We know Aqua-Spark as a highly competent investor within the aquaculture sector that shares our sustainability focus, and we are delighted to welcome Aqua-Spark as a new significant shareholder in HBC and appreciates the belief Aqua-Spark expresses about our products and prospects,” HBC CEO Roger Hofseth said in a press release.
Utrecht, the Netherlands-based Aqua-Spark has the goal of investing in aquaculture-focused businesses, including firms working to valorize the industry’s waste streams, that can “transform the industry while simultaneously proving the business case of sustainable practices.”
“This is Aqua-Spark's first investment into a public company. After careful due diligence, including site visits, market analysis and expert consultations, Aqua-Spark made a long-term, strategic investment into HBC, with the intention to significantly expand over time,” Aqua-Spark said in a press release. “Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins, and calcium from fresh salmon off-cuts and valorize waste streams of farmed salmon processing. HBC's revolutionary process closes the loop of a closed business model and takes the aquaculture industry one large step closer to true sustainability. HBC presents a novel, disruptive solution to deal with offcuts and side-streams, which is one of the most-significant sustainability challenges of modern-day aquaculture.”
HBC is currently conducting research into its products to identify what in them is having the effect of modulating inflammation and human immune responses, having initiated pre-clinical studies in multiple clinics and university research labs in several countries. Its current focus is use of peptide fractions of salmon protein hydrolysate to treat gastro-intestinal (GI) system against inflammation, including ulcerative colitis, necrotizing enterocolitis, age-related sarcopenia, iron deficiency anemia, eosinophilic asthma, COPD, and COVID-19. In addition to its head office in Norway, HBC operates branches in Oslo, London, Zürich, Chicago, Mumbai, Palo Alto, and Tokyo.
Aqua-Spark co-founders Amy Novogratz and Mike Velings said HBC is in a prime position to expand and increase its impact, including through the broadening of its inputs to multiple species.
"We believe that the company is on the cusp of an inflection point operationally and from an R&D perspective. In addition, the health benefits are truly extraordinary, and we are excited to see the latest results from trials and studies to be completed later this year and next. We view the company as a 'best-in-class' manufacturer of consumer health and pet health ingredients, and as an incubator of new drug leads. The latter is certainly something that the market has overlooked. Hofseth Biocare has incredible findings and patents, as well as ongoing trials in the fields of asthma and IBS, where its natural health products may be able to address a significant unmet need for mild to moderate cases of both conditions. We have stepped into the listed market for the first time as we believe that this company's potential is significant and undervalued by public markets on a long-term view.”
Founded in 2015, Aqua-Spark has EUR 212 million (USD 245 million) in assets under management and has thus far invested in 22 seafood-related businesses. In October, it invested in aquaculture software firm Ecto.
Photo courtesy of Hofseth BioCare
