Borregaard ASA Announces Convertible Loan Initiative with Alginor

Author: Addison Perry Updated: 10-06-2025 11:30 AM

Borregaard ASA Engages in Convertible Loan for Alginor

Borregaard ASA is set to collaborate with Must Invest and Hatteland Group as guarantors for a substantial NOK 200 million convertible loan aimed at supporting Alginor's growth.

Details of the Convertible Loan

This strategic loan allows for conversion into new shares by the lenders at a subscription price of NOK 10 per share. This price is subject to adjustments for any corporate actions that may occur, such as share splits or dividends.

Shareholder Participation

All existing shareholders of Alginor will have the opportunity to partake in this convertible loan. Depending on the level of participation from other shareholders, Borregaard’s financial commitment is expected to range between NOK 83 million to NOK 111 million. The payment for the loan will proceed in two equal tranches scheduled for October 2025 and February 2026.

Additional Financial Support

In conjunction with the convertible loan, an additional uncommitted tap facility of NOK 100 million will be available to provide further financial flexibility.

Secured Loan Facility

Moreover, Alginor has secured a new funding commitment totaling NOK 230 million through Haugesund Sparebank. This funding will be crucial for completing the construction and commissioning of a commercial-scale demonstration plant dedicated to alginates.

Strategic Implications for Borregaard ASA

The move to participate in Alginor’s financing structure aligns with Borregaard ASA's strategic goals to invest in innovative technologies and market opportunities that can further bolster their portfolio. This financing solution positions both Borregaard and Alginor to take advantage of growth in the alginate market.

About Alginates

Alginates are naturally occurring substances derived from seaweed, widely utilized across various industries including food, pharmaceuticals, and biotechnology. The ongoing investment in the demonstration plant signifies a commitment to enhancing production capabilities in this growing sector.

Contact Information

For further inquiries regarding the convertible loan, reach out to the Chief Financial Officer, Per Bjarne Lyngstad, at +47 952 44 515.

Frequently Asked Questions

What is the purpose of Borregaard's convertible loan to Alginor?

The loan is intended to support Alginor's operations and facilitate the development of a commercial-scale demonstration plant for alginates.

How much is Borregaard committing to the loan?

Borregaard's share of the loan is expected to be between NOK 83 million and NOK 111 million, depending on shareholder participation.

What are alginates and why are they significant?

Alginates are substances from seaweed used in various industries, notably in food and pharmaceuticals, highlighting their market value and versatility.

When will the loan payments be made?

The payments for the loan will occur in two equal installments, one in October 2025 and the other in February 2026.

Who can participate in this convertible loan?

All shareholders of Alginor are invited to partake in the proposed convertible loan, thereby enhancing their investment in the company.

About The Author

Hello, I'm 30-year-old financial writer and expert Addison Perry, and I love to simplify the intricacies of the financial industry. I've committed myself over the years to deciphering the subtleties of investing techniques and economic trends and converting them into doable guidance that anybody can use. My goal with writings and books is to make money interesting and approachable so that readers may take charge of their financial futures.

My enthusiasm to empowerment and education has propelled me through my career in finance. I write because I think that everyone should be able to make educated financial decisions, and I try to provide that. Regardless of experience level with investing, my work is intended to provide insightful analysis and practical advice to enable you to thrive in the always changing financial environment. I appreciate you traveling with me toward success and financial literacy.

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