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.