Simris Cancel announces its plan for the future

Simris Alg AB (publ) today publishes its Annual Report for 2020. In connection with the Annual Report, the company presents its development plan, including new candidate products and earliest milestones. The proposal of the Ordinary General Assembly for the appointment committee for new board members strengthens management to develop the company’s potential in the future.

Simris Alg has successfully developed its biotechnology platform from the laboratory to the industrial scale. This concept has been validated with the first products on the market, a series of nutritional supplements under its own brand Simris® Algae Omega-3. The company is now investing heavily in further research and developing potential through its new business areas of biomimetics and new foods.

Simris Alg’s unique ability consists of identifying, developing and manufacturing bioactive substances from microalgae. Marketing is done through partners who have the resources to develop new products in each market. A more detailed description can be found in the annual report, which will be published later today.

Simris biomimetics:

• SBMPhI and SBMNaI: advanced skin care (cosmetic) formulations as alternatives to animal caviar extracts. The products are expected to reach the B2B market in 2022.
• SBMtfX: transcription factors involved in the cellular mechanisms behind atopic dermatitis (eczema). Early growth stage (in vitro).
• SBMfuX: a functional polysaccharide with anti-inflammatory and prebiotic properties. Early growth stage (in vitro).
• SBMcaX: enzymes that capture free radicals and skin-protecting function. A proof-of-concept was implemented (in the laboratory).

Clients are primarily advanced cosmetic and skincare manufacturers and brands in Europe and the USA. The global market for advanced skin care biotechnology ingredients is valued at $ 557 million (2019).

New Simris Foods:

• Algae omega-3: Omega-3 EPA from microalgae. Today the product is used as a major ingredient in the company’s consumer products.
• Algae protein: A complete protein with the same nutritional properties as fish and seafood. Preliminary studies have been completed. The formulation is carried out as a development project in cooperation with large international companies.
• Algae and algae ganache thrive: new ingredients for creative gastronomy. Products are in the formulation stage.

Clients are manufacturers of food and gastronomy products. The market is subject to regulatory requirements for new foods. The global market value of alternative proteins is estimated at US $ 38 billion.

Simris:

• Simris® Algae Omega-3: a nutritional supplement for consumers.

The first products that reached the market stage. Market verified by leading US retailers and it shows that Simris®’s potential is on par with prestigious brands like Moon Juice and The Nue Co. The milestones achieved were important in validating the market and attracting the right partners with the resources required to successfully launch new lifestyle brands and increase sales. The nutritional supplement market in the beauty / prestige category is estimated to be valued at approximately US $ 4.5 billion.

The closest landmarks

• Product formulations are ready for SBMPhI and SBMNaI (1st: Prototype 2nd: on the market)
• Completion of the first alternative protein product (first: proof of concept second: prototype three: on the market)
• Partnering with Simris Inc on site for SIMRIS (US Dietary Supplements / Consumer)

Regulatory conditions
The regulatory requirements for the company’s products in the field of advanced skin care are very favorable, as they are natural products not covered by the Nagoya Protocol or chemical regulations such as REACH. Simris Alg has applied for COSMOS certification, which is a benchmark in the cosmetic market. The development costs and time required to market the company’s skin care ingredients are not significantly affected by regulatory requirements.

The methods of marketing new products within Novel Foods are largely subject to regulatory requirements in different markets. Demand for sustainable food innovations is very high globally, and in markets like the United States, Singapore or the United Kingdom after Brexit, regulatory requirements for new foods are more favorable than within the European Union. The company is currently reviewing its organizational strategy to reach its target markets within reasonable cost levels and timeframes.

Financing
Development activities within Simris Biomimetics are funded through private funds and public innovation support. Blue biotechnology is a priority area for many funding programs within the European Union and the company intends to seek such funds to boost its research and development activities. Within Novel Foods, the company collaborates with large, capital-rich companies that have the financial resources to develop Simris Alg’s raw materials into end products. The company is currently studying the need for working capital to carry out the described investments. The company’s assessment is that additional capital injection will be required in addition to sales revenue in 2021. Funding will be the prerogative of the upcoming board of directors, which has good experience and expertise from development companies, corporate transactions and international capital markets.

Reinforced behavior
The task of the Nominating Committee was to review the composition of the Board of Directors in support of Simris Alg’s future strategic direction. The proposed board consists of international members with demonstrated competencies and networks in business development from biotechnology, skin care, health and wellness. As new board members, it is proposed:

• Stephen Shapira (Chairman), London-based beauty industry expert and co-founder of BECCA Cosmetics,
• Peter Nählstedt, with a 20-year background of life sciences and industry, among others. As a former CEO of Probi and senior positions at GE Healthcare Life Science,
• Frank Puccio, a New York-based veterinarian and pharmacist who built a commercial venture of 80 small animal clinics in the United States, and
• Robert Quandt has a background as CFO and COO of Invincible Brands in Berlin, which he successfully helped with its rise and sale.

Re-election is suggested by Magnus Högström, who has a background as an analyst and fund manager. As per the guidelines of the previous annual general meeting, the Nomination Committee consisted of Niels Anderson (Chair), Johann Jorgensen and Stephen Shapira. The full proposal of the Nominating Committee is available on the company’s website, www.simrisalg.se/investerare.

Simris Alg’s management consists of Fredrika Gullfot (CEO), Daphne Jaeschke (CMO) and Christoffer Tell (CFO).

For more information, please contact:
Frederica Gilfoot, Chief Executive Officer, Simris Alg AB
Phone: +46 (0) 761345474, Email: [email protected]

About Simris Alg AB (year of publication)
Simris Alg is a multi-award winning pioneer that develops bioactive substances from cultured algae. The company’s goal and business concept is to save endangered marine habitats by producing raw materials from cultured microalgae, rather than fish and other marine animals. Business takes place in three areas: SIMRIS BIOMIMETICS (skin care and pharmaceuticals), SIMRIS NOVEL FOODS (new foods), and the consumer brand SIMRIS, which targets a global market in lifestyle, beauty and wellness. Simris Alg’s stock is traded on the Nasdaq First North Growth Market under the acronym SIMRIS and ISIN code SE0008091664. Certified advisor is Mangold Fondkommission AB, phone 08-503 015 50 and email [email protected].

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