Full Press Release Details
Procaps Issues Shareholder Letter Update
MIAMI, USA & BARRANQUILLA, Colombia -
September 18, 2024 - Procaps Group, S.A. (NASDAQ: PROC) ("Procaps" or the "Company"), a leading integrated
LatAm healthcare and pharmaceutical services, today issued the below letter to shareholders from Jos Antonio Vieira, CEO of Procaps,
with updates on the Company's restructuring and strategic plan projects.
We are pleased to update you on several significant
developments as we continue to move forward with our strategic plan and financial restructuring efforts.
Forbearance Agreements
We have successfully signed consolidated forbearance
agreements covering approximately an aggregate of $209 million in debt. These agreements are a crucial step in providing the Company with
the flexibility needed to continue supporting our core business operations while we work toward a comprehensive debt restructuring solution.
The forbearance agreements temporarily pause payments and prevent lenders from enforcing remedies, giving us the ability to focus on our
Shareholder Investment
We have received a $5 million investment from
the Company's controlling shareholders via a subordinated promissory note, which will provide temporary support for our immediate
working capital needs. However, we recognize that this is a short-term measure, and the Company's cash flow remains under significant
pressure. This underscores the urgency of executing our restructuring plan, securing additional financing, and optimizing our operations
to address the Company's liquidity needs.
We continue making progress on other fronts:
Internal Investigation and Financial Reporting:
We continue to work diligently alongside our legal and accounting advisors, in cooperation with our external auditors, to complete the
internal investigation and report our financial statements. Our focus remains on ensuring the accuracy and completeness of our financial
Debt Restructuring: Simultaneously, we
are working closely with our financial advisors to develop a comprehensive, long-term restructuring plan. FTI Consulting, Inc. has been
engaged to conduct an independent business plan analysis, which is already well underway. This independent review will provide us with
critical insights to support our efforts in restructuring our debt and positioning Procaps for sustainable financial health moving forward.
While we continue to face challenges, we remain
focused on executing our strategic plan. Our goals include improving operational efficiency, optimizing cash flow, and securing the financial
flexibility required to support our long-term growth objectives.
Thank you for your continued support and patience
as we complete the internal investigation, while working diligently to strengthen our financial position and create sustainable value
for all our stakeholders. We will continue to provide updates as we reach key milestones in our journey.
CEO of Procaps Group"
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such
state or jurisdiction.
Procaps Group, S.A. ("Procaps") (NASDAQ:
PROC) is a leading developer of pharmaceutical and nutraceutical solutions, medicines, and hospital supplies that reach more than 50 countries
in all five continents. Procaps has a direct presence in 13 countries in the Americas and nearly 5,000 employees working under a sustainable
model. Procaps develops, manufactures, and markets over-the-counter (OTC) pharmaceutical products, prescription pharmaceutical drugs (Rx),
nutritional supplements, and high-potency clinical solutions.
For more information, visit www.procapsgroup.com
or Procaps' investor relations website investor.procapsgroup.com.
investor.procapsgroup.com
Forward-Looking Statements
This press release includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target,"
"anticipate," "believe," "expect," "estimate," "plan," "outlook," "goal,"
"objective," "will," "may," "should," "can," "project" and other
similar expressions that predict or indicate future events, objectives, results or trends or that are not statements of historical matters.
Such forward-looking statements include, without limitation, projected financial information, the Company's expectations about the
timing of completion of the internal investigation and filing of the 2023 20-F, the Company's statements regarding seeking additional
financing, statements related to the Company's plans, outlook and strategy, other Company initiatives and objectives or forecasts
related to the Company's business, performance and industry. These forward-looking statements involve substantial risks and uncertainties,
or assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking
statements, and actual results could vary materially from these forward-looking statements. Factors that may cause future results to differ
materially from management's current expectations include, among other things, the discovery of additional information relevant
to the internal investigation; the conclusions of management (and the timing of the conclusions) concerning matters relating to the internal
investigation; the timing of the review by, and the conclusions of, the Company's independent registered public accounting firm
regarding the internal investigation and the Company's financial statements; the possibility that errors may be identified; the
risk that the completion and filing of the Form 20-F will take longer than expected; the inability to successfully implement or execute
on the Company's strategic objectives or initiatives; the inability to obtain additional financing; the inability to successfully
implement or execute on our restructuring plans; changes in applicable laws or regulations; the possibility that the Company may be adversely
affected by other economic, business, and/or competitive factors; the inability of the Company to execute on its expense reductions plans
or growth initiatives; and other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities
and Exchange Commission ("SEC") by the Company. The Company disclaims any obligation to update information contained in these
forward-looking statements whether as a result of new information, future events, or otherwise.