Procaps Group Announces Financing, Shareholders Agreement and Board Updates
Procaps Group (NASDAQ: PROC) has announced key strategic transactions and governance updates. The company entered a Secured Convertible Note Subscription Agreement with Hoche Partners Pharma Holdings for up to $40 million, with an initial $20 million note issued at 8.50% annual interest. Key stakeholders agreed to Board changes, with four new directors expected following the December 16, 2024 Annual General Meeting, and Alejandro Weinstein slated to become Chairman.
The company has renegotiated debt agreements, resulting in a $5 million junior note cancellation and $2.2 million reduction in accounts payable. Forbearance agreements covering approximately $209 million of financial indebtedness have been extended to January 31, 2025.
Procaps Group (NASDAQ: PROC) ha annunciato operazioni strategiche chiave e aggiornamenti di governance. L'azienda ha firmato un Accordo di Sottoscrizione di Note Convertibili Garantite con Hoche Partners Pharma Holdings per un massimo di $40 milioni, con un'importo iniziale di $20 milioni emesso a un tasso di interesse annuo dell'8,50%. I principali azionisti hanno concordato cambiamenti nel Consiglio di Amministrazione, con quattro nuovi direttori attesi dopo l'Assemblea Generale Annuale del 16 dicembre 2024 e Alejandro Weinstein previsto come Presidente.
L'azienda ha rinegoziato gli accordi di debito, portando alla cancellazione di un nota junior da $5 milioni e a una riduzione di $2,2 milioni nei debiti commerciali. Gli accordi di tolleranza che coprono circa $209 milioni di indebitamento finanziario sono stati estesi fino al 31 gennaio 2025.
Procaps Group (NASDAQ: PROC) ha anunciado transacciones estratégicas clave y actualizaciones de gobernanza. La empresa firmó un Acuerdo de Suscripción de Bonos Convertibles Asegurados con Hoche Partners Pharma Holdings por hasta $40 millones, con un bono inicial de $20 millones emitido a un interés anual del 8.50%. Los principales accionistas acordaron cambios en la Junta Directiva, con cuatro nuevos directores esperados después de la Junta General Anual del 16 de diciembre de 2024, y Alejandro Weinstein designado como Presidente.
La empresa ha renegociado los acuerdos de deuda, resultando en la cancelación de un bono junior de $5 millones y una reducción de $2.2 millones en cuentas a pagar. Los acuerdos de moratoria que cubren aproximadamente $209 millones de deuda financiera se han extendido hasta el 31 de enero de 2025.
Procaps Group (NASDAQ: PROC)는 주요 전략적 거래 및 거버넌스 업데이트를 발표했습니다. 이 회사는 Hoche Partners Pharma Holdings와 최대 $40 백만을 위한 담보 전환 사채 구독 계약을 체결했으며, 초기 $20 백만 사채는 연 8.50%의 이자율로 발행되었습니다. 주요 이해관계자들은 이사회 변경에 합의했습니다, 2024년 12월 16일 연례 총회 이후 4명의 새로운 이사가 예상되며, Alejandro Weinstein이 의장으로 예정되어 있습니다.
회사는 채무 계약을 재협상하여 $5 백만의 주니어 사채 취소와 $2.2 백만의 외상매출금 감소를 가져왔습니다. 약 $209 백만의 금융 부채를 포함하는 유예 계약이 2025년 1월 31일까지 연장되었습니다.
Procaps Group (NASDAQ: PROC) a annoncé des transactions stratégiques clés et des mises à jour de gouvernance. L'entreprise a conclu un Accord de Souscription de Billets Convertible Sécurisé avec Hoche Partners Pharma Holdings pour un montant maximum de 40 millions de dollars, avec un billet initial de 20 millions de dollars émis à un taux d'intérêt annuel de 8,50 %. Les principaux actionnaires ont convenu de changements au sein du Conseil d'Administration, avec quatre nouveaux administrateurs attendus après l'Assemblée Générale Annuelle du 16 décembre 2024, et Alejandro Weinstein prévu comme Président.
L'entreprise a renégocié des accords de dette, entraînant l'annulation d'un billet junior de 5 millions de dollars et une réduction de 2,2 millions de dollars des comptes à payer. Des accords de tolerance couvrant environ 209 millions de dollars de dettes financières ont été prolongés jusqu'au 31 janvier 2025.
Procaps Group (NASDAQ: PROC) hat wichtige strategische Transaktionen und Governance-Updates angekündigt. Das Unternehmen hat mit Hoche Partners Pharma Holdings einen gesicherten Wandelanleihe-Abonnementvertrag über bis zu 40 Millionen USD abgeschlossen, wobei eine anfängliche Anleihe über 20 Millionen USD zu einem jährlichen Zinssatz von 8,50 % ausgegeben wurde. Wichtige Anteilseigner haben den Wechsel im Vorstand vereinbart, wobei nach der Hauptversammlung am 16. Dezember 2024 vier neue Direktoren erwartet werden und Alejandro Weinstein als Vorsitzender vorgesehen ist.
Das Unternehmen hat die Schuldenvereinbarungen neu verhandelt, was zu einer Stornierung einer Junior-Anleihe über 5 Millionen USD und einer Reduzierung der Verbindlichkeiten um 2,2 Millionen USD geführt hat. Stundungsvereinbarungen, die etwa 209 Millionen USD finanzieller Verschuldung abdecken, wurden bis zum 31. Januar 2025 verlängert.
- Secured up to $40 million in convertible notes financing
- Cancelled $5 million junior unsecured subordinated note
- Reduced accounts payable by $2.2 million
- Extended forbearance agreements to January 31, 2025
- High interest rate of 8.50% on convertible notes
- Significant debt burden of $209 million under forbearance
- Required collateral of first-priority security interest in subsidiary equity
Insights
The financing and debt restructuring announcements represent significant developments for Procaps Group. The
However, the extended forbearance agreements on
The restructuring of the board of directors and new shareholder nomination agreement marks a significant governance shift. The appointment of Alejandro Weinstein as Chairman and addition of four new directors suggests a major overhaul of corporate oversight. This governance restructuring, coupled with agreements between key stakeholders including Hoche and the Minski Trusts, indicates a coordinated effort to strengthen leadership during a critical period.
These changes appear designed to improve oversight and strategic direction during the company's financial restructuring phase. However, the concentration of control among a few major shareholders and creditors warrants attention regarding minority shareholder interests.
MIAMI and BARRANQUILLA, Colombia , Dec. 03, 2024 (GLOBE NEWSWIRE) -- Procaps Group, S.A. (NASDAQ: PROC) (“Procaps” or the “Company”), a leading integrated LatAm healthcare and pharmaceutical services company, today announced the successful execution of key strategic transactions and governance updates aimed at strengthening its financial position and supporting long-term growth objectives.
On November 29, 2024, the Company entered into a Secured Convertible Note Subscription Agreement with Hoche Partners Pharma Holdings S.A. ("Hoche"), pursuant to which the Company may issue up to
The Convertible Notes bear an annual interest rate of
The Company’s key stakeholders, including Hoche and Caoton Company, S.A., acting as trustee to the Sognatore Trust, (“Sognatore”), Commonwealth Trust Company, acting as trustee to the Simphony Trust (“Simphony”) and Commonwealth Trust Company, acting as trustee of the Deseja Trust (together with Sognatore and Simphony, the “Minski Trusts”), have also reached an agreement to support changes to the Company’s Board of Directors. Under a newly established Shareholder Nomination Agreement between such shareholder groups, Procaps expects to welcome four new directors following the Company’s upcoming Annual General Meeting on December 16, 2024. Additionally, Mr. Alejandro Weinstein is expected to assume the role of Chairman of the Board, leveraging his extensive industry expertise to guide the Company’s strategic initiatives and enhance shareholder value.
Procaps has also renegotiated key debt-related agreements, resulting in the cancellation of a
As previously announced, the Company, Procaps S.A., and certain of their respective subsidiaries (collectively with the Company and Procaps S.A., the “Obligors”) had entered into forbearance agreements with respect to approximately
"These transactions underscore the unwavering commitment of our key shareholders to support Procaps’ growth and operational recovery. These strategic initiatives highlight our focused efforts to optimize our capital structure, enhance corporate governance, and deliver sustainable value for our shareholders," said José Antonio Toledo Vieira, Chief Executive Officer of Procaps.
These developments reinforce Procaps’ commitment to achieving its strategic priorities, enhancing its liquidity and financial stability, delivering innovative healthcare solutions, and positioning itself as a trusted partner in the global pharmaceutical landscape.
About Procaps Group
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 Contact:
Melissa Angelini
ir@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 independent investigation, financial restatement 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 investigation; the conclusions of management (and the timing of the conclusions) concerning matters relating to the 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 additional errors may be identified; the risk that the completion and filing of the 2023 20-F will take longer than expected; the inability to successfully implement or execute on the Company’s strategic objectives or initiatives, including governance and compliance enhancements; 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.
FAQ
What is the value of Procaps Group's (PROC) new convertible note agreement with Hoche Partners?
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