Capital raise and new CEO

CAPITAL RAISE OF NOK 150 MILLION 

As previously disclosed in a shareholder letter, it became clear in February that there are significant CapEx and cost increases compared to prior expectations related to the biorefinery at Avaldsnes (F3). The remaining amount required to complete construction and commissioning of the facility is estimated to be approximately NOK 500–550 million, bringing the total CapEx for F3 (including the F2 pilot plant) up to NOK 820–870 million.

The board has had constructive discussions with the company’s major shareholders, including Borregaard, Hatteland and Must Invest AS, who have expressed continued support of the company and commitment to its business case. The board has proposed to raise NOK 150 million in new equity, of which NOK 100 million has been committed by the company's largest shareholders Borregaard AS, Must Invest AS, and Jakob Hatteland Holding AS. These shareholders have further expressed willingness to underwrite the remaining NOK 50 million to be raised through a subsequent repair offering with subscription rights for the remaining shareholders in line with equal treatment principles.

The subsequent repair offering will enable other existing shareholders to fully retain their pro rata ownership through subscription of new shares. Information regarding this offering will be communicated when appropriate.

NEW CEO 

Following the CEO stepping down earlier this year, Martin Lersch, CTO for Business Development in Borregaard, took on the role as acting CEO. Lersch, who came in as acting COO in November of 2024, will continue to support the company after returning to Borregaard. After conducting a thorough search for a new CEO, the board has appointed current board member and CFO in Hatteland, Sten Stenersen, as the company’s CEO for an interim period beginning in May of 2025. Sten has held a board seat since September of 2023 and has followed the company closely since before then. He will resume his position at Hatteland in due course. Following his appointment, Stenersen will step down as a board member of the company.