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Third party research

Bioextrax: Advancing the green transition - VH Corp

Bioextrax

This is a third party research report and does not necessarily reflect our views or values

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* Solutions enabling production of bio-based and biodegradable plastics
* Licencing revenue model enabling fast scalability and operating leverage
* We initiate coverage with a fair value of SEK 10.5 per share

Bioextrax has developed a unique process solution that enables production of
the biodegradable plastic PHA. In addition, the company is offering a
technology that could utilize poultry waste in a more efficient way. The
licence-based revenue model in combination with attractive market
opportunities constitute an exciting upside potential for investors.

Our DCF model indicates a fair value for the Bioextrax share of SEK 10.5 given
our current assessment of the risks. The company needs to showcase that their
technology is applicable for production in larger scales before reaching
future value inflection points. The company estimates that the recently
acquired facility will be able to produce a larger amount of PHA for market
introduction and sample volumes. If this phase is successful, the company will
have greater opportunities to accelerate the steps toward licence agreements
and therefore we see potential of revising our valuation at a later stage.

The initial research report is available here
(https://www.vhcorp.se/nyheter/bioextrax-initial-analys).

About Market Focus
------------------------------------------------------------------------------
The research report is prepared as part of Market Focus, Västra Hamnen
Corporate Finance's commissioned research offering.

This is a press release from Västra Hamnen Corporate Finance AB.
Web: vhcorp.se (https://vhcorp.se/)
Twitter: @vhcorp_se (https://twitter.com/vhcorp_se)
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