One Business, Becomes Two
ORF Genetics and BIOEFFECT announced the demerger of operations, dividing assets between two separate businesses effective January 1, 2022.
Over the past year the management of ORF Genetics, has been working on a new vision and strategy for the company. The new strategy is based on the premises that the operation of ORF Genetics has progressed into two different paths that have enjoyed synergy over the years but are now facing greater opportunities in separate entities: BIOEFFECT with an independent operation for skin care products and ORF Genetics working independently on growth factors. Consequently, the operation has been split in two separate businesses.
The demerger will divide assets between ORF Genetics hf. and BIOEFFECT Holding ehf. retrospectively from January 1st, 2022. The demerger was unanimously approved during the General Meeting on April 8th, 2022, where over 90% of shareholders attended.
The General Meeting also approved the Board's proposal to issue convertible bonds in the total amount of 500 million ISK. Shareholders will have a pre-emptive subscription right to the convertible bonds. Further financing is also being prepared for ORF Genetics where the company intends to secure up to 3500 million ISK (about 25 million EUR) from new investors, locally as well as globally.