Procaps Group Reports Record Third Quarter 2021 Financial Results Third Quarter 2021 Net Revenues Increased 35% to $106.8 Million Year-Over-Year with Adjusted EBITDA Up 27% Year-Over-Year to $24.5 Million First Nine Mont

Group Reports Record Third Quarter 2021 Financial Results

Quarter 2021 Net Revenues Increased 35% to $106.8 Million Year-Over-Year with Adjusted EBITDA Up 27% Year-Over-Year to $24.5 Million

Nine Months Net Revenues Increased 33% to $283.2 Million, with LTM Net Revenues at $401.4 Million and LTM Adjusted EBITDA up to $100.3

Double Digit Revenue Growth in Four Out of Five Business Units Driven by Market Share Gains and New Product Launches

Business Combination with Union Acquisition Corp. II on September 29, 2021, and Listed on The Nasdaq Global Market Under "PROC"

on September 30, 2021

a Result of the Business Combination, Procaps Group Ended the Third Quarter 2021 with $100.2 Million in Unrestricted Cash and Cash Equivalents,

Which Will Fund Future Growth Initiatives

to Host Business Update Call on Tuesday, November 23, 2021 at 4:30 p.m. Eastern Time

COLOMBIA - November 19, 2021 - Procaps Group (NASDAQ: PROC), a leading integrated international healthcare and pharmaceutical

company, today announced its financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Financial Highlights

Financial Highlights for the Nine Months Ended September 30, 2021

third quarter of 2021 was highlighted by the achievement of a successful business combination with Union Acquisition Corp. II ("LATN")

and the listing of our ordinary shares on the Nasdaq, along with continued financial and operational momentum," said Ruben Minski,

Procaps Group's Founder, Chairman and Chief Executive Officer. "The resurgence in the market with the re-opening of the economy,

rapid ramp-up of new product launches, continued roll-out of products into new geographic areas and measured improvements to our inventory

rotations combined to deliver 35% revenue growth during the quarter, including double-digit increases in four out of five of our business

Procaps Colombia, CAN and CASAND business units had the highest growth among our business units as a result of increased demand across

the board for a variety of products, including both Rx and OTC products, and new product launches. Likewise, our Diabetrics business

unit experienced strong growth during the third quarter of 2021 compared to the previous quarter.

we look to further our growth initiatives, we believe the new capital from our business combination has positioned us to execute a multi-prong

growth strategy that we expect will continue to deliver double-digit growth in our core markets with strong cash generation to the bottom

line. We are now further enabled to focus on strategic roll-ups and consolidation in the region that we believe will drive an accelerated

competitive position and value creation.

our B2B segment, we expect to see growth from both our existing portfolio and product pipeline and in our B2C segment, we anticipate

growth initiatives from our existing portfolio and from new products focused on current therapeutic areas in chronic diseases such as

pain relief, immunology, cardiology, respiratory and dermatology, and the internationalization of our existing portfolio, with on-going

efforts to expand our footprint of successful products outside of Colombia. Our internationalization strategy and on-going efforts to

expand our footprint of successful products outside of Colombia continues to be one of our primary focuses, with a return to trade fairs

and over 67 products internationalized during the quarter. We believe our company-wide product pipeline, with an estimate of over 600

product launches in the next three years, will provide the support for our growth in the next few years.

quarter's accomplishments and strong financial results are helping to accelerate the delivery of our innovative pharmaceutical

solutions and drive new expansion initiatives that we believe will enable us to increase our market share of the approximately $58 billion

pharmaceutical market in Latin America," concluded Minski.

Financial Officer Patricio Vargas commented: "As a result of our business combination, there were a number of one-time charges

that affected our bottom line, and we are happy to report that they are extinguished and now reflect positive total equity on the balance

sheet. For the nine months ended September 30, 2021, finance expenses totaled $79 million, of which $23 million was related to finance

expenses accrued for the put options held by certain shareholders and $36 million represented a one-time expense for the termination

of put options held by certain shareholders in connection with the recently closed business combination. Moreover, classifying and extinguishing

these derivatives enables the Company to articulate a cleaner financial profile in subsequent quarters as we move closer toward positive

net income operations. Considering the favorable demand conditions that we have observed in the different markets we operate, we have

decided to increase our investments in marketing and R&D, which we believe will result in further growth in 2022. We look forward

to reviewing these numbers and all of the positive operational metrics since the closing of our business combination on our upcoming

business update conference call next week," concluded Vargas.

Quarter 2021 Financial Results

revenues for the three months ended September 30, 2021 totaled $106.8 million, compared to net revenues of $79.3 million for the three

months ended September 30, 2020, representing a growth of 35% year-over-year. Net revenue by strategic business unit ("SBU")

increase in net revenue was attributed to growth across all SBUs.

profit increased by 30% to $62.3 million for the three months ended September 30, 2021, compared to $47.8 million for three months ended

September 30, 2020. This increase was primarily attributable to strong topline growth.

margin decreased 200 basis points to 58% in the three months ended September 30, 2021, compared to 60% in the three months ended September

30, 2020. The slight decrease in gross margin resulted from increased sales in Clinical Specialties due to increased demand related to

the COVID-19 pandemic, and increased sales of OTC products in CAN, both of which have lower margins than other business lines.

loss for the three months ended September 30, 2021 was $36.9 million, compared to a net loss of $1.0 million for the three months ended

September 30, 2020. The increase in net loss was primarily attributable to a one-time, non-cash adjustment of $44 million to reflect

the termination, on the closing of the business combination, of the put options previously granted to certain shareholders.

below under the heading "Interim Statement of Changes in Equity" for a table that reconciles the termination of put options

from liability to equity on the Company's balance sheet. As of December 31, 2020, the Company reported total equity (deficit) of

($254.7 million) and due to the reconciliation post business combination, the Company reported total equity of $36.3 million as of September

EBITDA increased by 27% to $24.5 million for the three months ended September 30, 2021, compared to $19.3 million for the three months

ended September 30, 2020. This increase was driven by the strong demand across branded Rx and OTC businesses from both our existing products

as well as from our continued rollout of new product launches.

below under the heading "Use of Non-IFRS Financial Measures" for a discussion of Adjusted EBITDA and a reconciliation of

net income, which the Company believes is the most comparable IFRS measure, to Adjusted EBITDA.

net debt as of September 30, 2021, totaled 118.5 million, of which approximately 47% consisted of long-term obligations. Net Debt-to-LTM

Adjusted EBITDA ratio as of September 30, 2021 was 1.2x.

totaled $100.2 million at September 30, 2021, compared to $4.2 million at December 31, 2020. The increase in cash during year is a result

of a net of $100.0 million in cash proceeds related to the closing of the business combination with Union Acquisition Corp. II.

Third Quarter 2021 Operational Highlights

Development and Intellectual Property

of Non-IFRS Financial Measures

management uses and discloses EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, LTM Adjusted EBITDA, LTM Adjusted EBITDA margin and Net

Debt-to-LTM Adjusted EBITDA ratio, which are non-IFRS financial information to assess our operating performance across periods and for

business planning purposes. We believe the presentation of these non-IFRS financial measures is useful to investors as it provides additional

information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide

additional insight and transparency on how we evaluate our business. These non-IFRS measures are not meant to be considered in isolation

or as a substitute for financial information presented in accordance with International Financial Reporting Standards ("IFRS")

issued by the International Accounting Standards Board and should be viewed as supplemental and in addition to our financial information

presented in accordance with IFRS.

define EBITDA as profit (loss) for the period before interest expense, net, income tax expense and depreciation and amortization. We

define Adjusted EBITDA as EBITDA further adjusted to exclude certain isolated costs incurred as a result of the COVID-19 pandemic, transaction

expenses related to the business combination with Union Acquisition Corp. II, certain costs related to business transformation initiatives,

certain foreign currency translation adjustments and certain other finance costs adjustments. We also report Adjusted EBITDA as a percentage

of net revenue as an additional measure so investors may evaluate our Adjusted EBITDA margins. None of EBITDA, Adjusted EBITDA or Adjusted

EBITDA margin are presented in accordance with generally accepted accounting principles ("GAAP") or IFRS and are non-IFRS

use EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, LTM Adjusted EBITDA and Net Debt-to-LTM Adjusted EBITDA ratio for operational and

financial decision-making and believe these measures are useful in evaluating our performance because they eliminate certain items that

we do not consider indicators of our operating performance. EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, LTM Adjusted EBITDA and

Net Debt-to-Adjusted EBITDA ratio are also used by many of our investors and other interested parties in evaluating our operational and

financial performance across reporting periods. We believe that the presentation of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin,

LTM Adjusted EBITDA and Net Debt-to-LTM Adjusted EBITDA ratio provides useful information to investors by allowing an understanding of

key measures that we use internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing our operating

Adjusted EBITDA, Adjusted EBITDA margin, LTM Adjusted EBITDA and Net Debt-to-LTM Adjusted EBITDA ratio are not recognized terms under

IFRS and should not be considered as a substitute for net income (loss), cash flows from operating activities, or other income or cash

flow statement data. These measures have limitations as analytical tools, and should not be considered in isolation or as substitutes

for analysis of our results as reported under IFRS. We strongly encourage investors to review our financial statements in their entirety

and not to rely on any single financial measure.