Atlantic Sapphire ASA First Half 2025 Results: Decisive Turnaround - Phase 1 Validated and Profitability in Sight

About this update from Atlantic Sapphire Asa

Miami, August 31, 2025 Highlights from the first half of 2025o H1 2025 revenue nearly doubled to USD 21.5m vs. H1 2024, reflecting anearlydoubling in average prices and harvest weights o Record biological performance with 97% superior share, low mortality,strongerfeeding and steady biomass gain o EBITDA loss narrowed to USD -30.7m from USD -46.6m in H1 2024o Revised business plan improves capital efficiency, lowers risk andacceleratespath to breakeven with first positive EBITDA expected in late 2026o 2025 harvest volume expected at ~5,400 tons HOG, up ~25% vs. 2024o 2026 volume expected at ~7,000 tons with further optimization of Phase1thereafter to reach ~7,500-8,500 tons and $3-5 EBITDA/kgo Phase 1 validation to unlock high-margin, value-accretive Phase 2expansiontargeting EBITDA of $4-6/kg on ~25,000 tons Subsequent eventso Atlantic Sapphire ASA (the "Company", and together with itsconsolidatedsubsidiaries, the "Group") intends to raise a new Convertible Loan of USD31-35million, which together with certain adjustments to the Company's bank debtfinancing with DNB Bank ASA, is estimated to fund the Company through tobreak-even for Phase 1 of the Group's Homestead Bluehouse.o In connection with the contemplated new Convertible Loan of USD 31-35million,certain large existing shareholders represented on the Board of Directors haveindicated their strong support to underwrite USD 25 million. The Company hasfurther received commitments from certain other existing investors to investapproximately USD 7 million in the Convertible Loan, such that the totalamountof indicative support and pre-commitments totals approximately USD 32 million. Comment from CEO Pedro Courard"The first half of 2025 marked a decisive shift for Atlantic Sapphire.Operations are now stable, biological performance is at record levels, andfinancial results are improving. With harvest weights nearly doubled, superiorshare consistently high, and prices of $12/kg for our premium BluehouseTMproduct, our platform is now demonstrating its full potential.We have finalized a revised business plan requiring only USD 3 million ofadditional capex, with materially lower operating costs. Positive EBITDA isexpected by the end of 2026 and will continue improving thereafter. To supportthis last phase of Phase 1 optimization, we are preparing a flexible financingsolution structured to fully fund Atlantic Sapphire through to breakeven ofPhase 1 and has the strong backing of our main owners." Operational and Financial ReviewHarvest volumes in the first half of 2025 reached 2,486 tons HOG, a 4%increaseversus the same period last year. Average harvest weights for the first halfof2025 improved to 2.86kg, with Q2 average harvest weight at 3.1kg, while theaverage sales price increased to $8.67/kg, up 88% and 86%, respectively,versusH1 2024. Biological indicators - including superior share, mortality, feedconversion, and biomass gain - continued to strengthen, reflecting disciplinedSOP execution and systematic removal of bottlenecks.Revenue nearly doubled year-on-year to USD 21.5 million, driven by improvedprice achievement and higher volumes. Operating costs decreased despite legacysystem constraints, and the operating loss was reduced by USD 13.9 millioncompared to H1 2024. Net cash flows from operations and investments weresignificantly lower compared to the previous year, supported by improvedoperational performance and reduced Phase 2 spend respectively. The equityratiostood at 66.7% at period end, with all covenants under the amended creditfacility in compliance.Phase 2 construction remains paused, with activities limited to design,engineering, and optimization. Revised Business PlanThe updated plan targets ~7,000 tons of harvest volume in 2026, rising toward7,500-8,500 tons thereafter. Compared to the previous plan, capex has beenreduced to USD 3 million and is focused on high impact projects related to CO2removal, water treatment, and energy efficiency. Substantially lower operatingcosts on the back of improved staffing, energy efficiency, increased volumesandoperational discipline are expected to result in an EBITDA cost of $10/kg inthenear-term. EBITDA breakeven is expected in late 2026, with Phase 1 seengenerating $1-2/kg of EBITDA in the near-term, with $3-5/kg feasible in anoptimized Phase 1 environment. More information about the Revised Business Plan and the contemplatedfinancinground (as described below) can be found in the H1 2025 presentation. Contemplated funding round to reach EBITDA break-evenAs previously announced in the February 2025 update, the biomass adjustmentprioritizing increased harvest weights delayed the timing for EBITDAbreak-even.While the Company is now seeing the positive results of those adjustments, theCompany recognizes the need for additional capital to realize theprofitabilitypotential of Phase 1. As such, the Company is now contemplating the issuanceofa new convertible loan of USD 31-35 million (the "Transaction"). This,togetherwith certain amendments in the loan agreement with DNB Bank ASA, is estimatedtofund the capex and operations of the Company until reaching EBITDA break-evenofPhase 1, with a contingency. Contemplated issuance of a new Convertible Loan:In connection with the contemplated issuance of a new USD 31-35 millionConvertible Loan, the Company has received strong support to underwrite USD 25million from its BoD Shareholders, being Nordlaks Holding AS (for a loanamountof USD 11 million), Condire Management LP (for a loan amount of USD 11million)and Strawberry Capital AS (for a loan amount of USD 3 million). Certain otherexisting shareholders have further committed to subscribe for approximatelyUSD7 million in the Convertible Loan, such that the total amount of indicativesupport and pre-commitments totals approximately USD 32 million. The Companywill seek to complete the issuance of the Convertible Loan in the time to comeand will update the market in due course. To ensure necessary financing until the contemplated Convertible Loan iscompleted, the Company has entered into a bridge loan agreement of USD 6millionwith the BoD Shareholders (the "Bridge Loan"). The Bridge Loan is expected toberolled over into the Convertible Loan (including PIK interest and originationfee) upon completion of this transaction (the "Bridge Loan Rollover").Further, the key terms of the contemplated Convertible Loan are expected toinclude the following: o Maturity: 5 years.o Interest rate: 10.00 per cent. per annum, payable-in-kind bycapitalization tothe outstanding principal amount ("PIK Interest") semi-annually in arrears.o Conversion price: NOK 10.00, subject to customary anti-dilutionmechanisms.o Conversion Period: Commencing one year after utilization date andending ontenth business day prior to Maturity Date or any earlier date fixed forrepayment of the Convertible Loan. o Conversion incentive in a Qualifying Equity Raise: Upon any equityraise bythe Company with gross proceeds of at least USD 100,000,000 (a "QualifyingEquity Raise"), each Lender that exercises its Conversion Rights within 20business days following registration of such equity raise with the NorwegianRegister of Business Enterprises (Nw. Brønnøysundregistrene) shall be entitledto receive one additional Share for every three Shares issued upon conversion,credited as fully paid at no additional cost to such Lender.o Conversion of Existing Convertible Loan: The Company has agreed toexchangeCondire's Existing Convertible Loan in the principal amount of USD 20,000,000plus accrued interest into the Convertible Loan at 80% of the outstandingprincipal amount plus accrued interest at the time of exchange with the effectthat the Company's obligation under the Existing Convertible Loan will be niland the increased obligation under the Convertible Loan will be 80% of theExisting Convertible Loan. Condire's participation in the Convertible Loan isfurther conditional upon the general meeting of the Company approving theexchange of the existing convertible loan into the new Convertible Loan.o Underwriting fee: Under certain conditions, the investors in theConvertibleLoan will receive a fee of 15% payable in kind and capitalized to outstandingprincipal amount. o Capitalized Amounts: In addition to the cash proceeds described above,thefollowing amounts will be capitalized to the principal of the ConvertibleLoan:i) PIK Interest and origination fee of 10% accrued under the Bridge Loan; ii)underwriting fee payable under the Convertible Loan; and; iii) as describedabove, the Existing Convertible Loan will be exchanged into the ConvertibleLoanat 80% of the outstanding principal amount plus accrued interest of theExistingConvertible Loan at the time of exchange.o Conditions precedent: Approval by the extraordinary general meeting oftheCompany and certain other usual and customary conditions precedents. Adjustments to bank financing package:Pursuant to raising a Convertible Loan of USD 35 million, DNB Bank ASA (the"Lending Bank") has credit approved certain amendments to the current loanagreement, including i) adjusting of covenants, ii) release of parts of therestricted cash under the current loan agreement, iii) adjusting maturity dateto July 2027 and iv) delayed instalments.DNB Carnegie, a part of DNB Bank ASA, has been engaged as Advisor for theCompany in connection with the contemplated Transaction.More information about the contemplated Transaction will be provided in duecourse. OutlookAtlantic Sapphire enters the second half of 2025 with a clear roadmap tobreakeven and self-funding operations. Harvest volumes are expected to reach~5,400 tons this year, rising to ~7,000 tons in 2026. Core biology isvalidated,operations are stable, and financing is in progress.The contemplated convertible loan, strongly supported by the Company's largestshareholders, is expected to provide a sufficient buffer to fund operationsthrough breakeven. With Phase 1 now delivering consistently improvingoperational and financial results, Atlantic Sapphire is positioned to completeits turnaround and unlock the next stage of value accretive growth, with Phase2expansion targeting harvest volume of 25,000 tons and EBITDA of $100-150m perannum. Presentation of resultsOn Monday 1 September at 7:00 a.m. CET (1:00 a.m. EST), the company will hostawebcast to present the results. The webcast can be accessed via the followinglink: https://vimeo.com/1113999966Investors are invited to submit their questions via email [email protected], with the company aiming to respond toquestions in a timely manner. For further information, please contact:Pedro Courard, CEO, Atlantic Sapphire ASA Gunnar Aasbo-SkinderhaugAtlantic Sapphire ASA, Deputy CEO/ CFO Email: [email protected], [email protected] About Atlantic Sapphire ASA:Atlantic Sapphire is pioneering Bluehouse® (land-raised) salmon farming,locally, and transforming protein production, globally. Atlantic Sapphireoperated its innovation center in Denmark from 2011 until 2021 with a strongfocus on R&D and innovation to equip the Company with the technology andprocedures that enable the Company to commercially scale up production in endmarkets close to the consumer. In the US, the Company holds the requisitepermits and patents to construct its Bluehouse® in an ideal location inHomestead, Florida, just south of Miami. The Company's Phase 1 facility is inoperation, which provides the capacity to harvest up to approximately7,500-8,500 tons (HOG) of salmon annually. The Company completed its firstcommercial harvest in the US in September 2020. Atlantic Sapphire is currentlydeveloping its Phase 2 expansion, which will bring total annual productioncapacity to 25,000 tons and has a long-term targeted harvest volume of>100,000tons. This information is subject to the disclosure requirements pursuant to Section5-12 the Norwegian Securities Trading Act. This information is considered tobeinside information pursuant to the EU Market Abuse Regulation and is subjecttothe disclosure requirements pursuant to section 5-12 of the NorwegianSecuritiesTrading Act. This information was submitted for publication, through theagencyof the contact persons set out above, on the time and date provided. https://newsweb.oslobors.no/message/654339

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