Element ASA : announces that discussions regarding an acquisition of Harmonychain are terminated and cancellation of conditional NOK 60 million private placement

(Oslo, 11 January 2021) Reference is made to the stock exchange notices
published on 3 December 2020 regarding the potential acquisition of Harmonychain
and the conditional NOK 60 million private placement.   
 
Element ASA (OSE: ELE)today announces that the discussions regarding the
acquisition of at least 95% of the shares in Harmonychain for a total of 51
million Element considerations shares has been terminated and the conditional
NOK 60 million private placement has consequently been cancelled.

Based on findings in the due diligence process, the Board of Directors of
Element concluded that the commercialization stage for the Scrypt microchip
would materialize later than initially indicated. To balance the perceived
increase in risk, the Board extended an adjusted offer to the shareholders of
Harmonychain. 
The adjusted offer was not accepted by the sellers and the negotiations
regarding a final share exchange agreement  have, in agreement with the sellers,
therefore been terminated.

The NOK 60 million conditional private placement which Element announced on 3
December 2020 was conditional based on inter alia that Element ASA has entered
into a final share exchange agreement with Harmonychain shareholders
representing at least 95 % of the Harmonychain shares. As this condition will
not be be fulfilled, the private placement has been cancelled, and,
consequently,  the contemplated repair issue has also been cancelled.

Element will continue to pursue alternative targets for a business combination
which can increase shareholder value for all Element shareholders.

For additional information, please contact:
Thomas Christensen, Chairman of the Board of Directors of Element, [phone]
Geir Johansen, CEO Element, [phone]
www.oslobors.no

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© Oslo Bors ASA, source Oslo Stock Exchange