Procaps Group Announces Key Shareholder and Board Decisions, Committee Restructuring, and Leadership Updates
Procaps Group (NASDAQ: PROC) announced significant changes following its recent Shareholders Meeting and Board of Directors meeting. The company elected new Board members, including Alejandro Weinstein as Executive Chairman, along with Nicolas Weinstein, Ernesto Carrizosa, and Jose Frugone, while David Yanovich resigned from the Board.
The company restructured its Board committees, establishing new members and chairpersons for the Audit, Compensation, M&A, and Nominating committees. A new Commercial, Innovation, and Marketing Committee was also created.
In leadership updates, Patricio Vargas transitioned from CFO to Chief Optimization and Rationalization Officer, focusing on turnaround strategy and M&A initiatives. An Interim CFO was appointed to handle restatement processes and financial reporting, while Melissa Angelini was named Interim VP of Finance, overseeing corporate financial operations and investor relations.
Procaps Group (NASDAQ: PROC) ha annunciato importanti cambiamenti in seguito alla sua recente Assemblea degli Azionisti e alla riunione del Consiglio di Amministrazione. L'azienda ha eletto nuovi membri del Consiglio, inclusi Alejandro Weinstein come Presidente Esecutivo, insieme a Nicolas Weinstein, Ernesto Carrizosa e Jose Frugone, mentre David Yanovich si è dimesso dal Consiglio.
L'azienda ha ristrutturato i suoi comitati del Consiglio, nominando nuovi membri e presidenti per i comitati di Audit, Compensazione, M&A e Nomine. È stato anche creato un nuovo Comitato per il Commercio, l'Innovazione e il Marketing.
Negli aggiornamenti sulla leadership, Patricio Vargas è passato da CFO a Chief Optimization and Rationalization Officer, concentrandosi sulla strategia di recupero e sulle iniziative di M&A. È stato nominato un CFO ad interim per gestire i processi di ripristino e la rendicontazione finanziaria, mentre Melissa Angelini è stata nominata VP Finanza ad interim, sovrintendendo le operazioni finanziarie aziendali e i rapporti con gli investitori.
Procaps Group (NASDAQ: PROC) anunció cambios significativos tras su reciente Junta de Accionistas y reunión de la Junta Directiva. La empresa eligió nuevos miembros para la Junta, incluyendo a Alejandro Weinstein como Presidente Ejecutivo, junto con Nicolas Weinstein, Ernesto Carrizosa y Jose Frugone, mientras que David Yanovich renunció a la Junta.
La compañía reestructuró sus comités de la Junta, estableciendo nuevos miembros y presidentes para los comités de Auditoría, Compensación, M&A y Nominaciones. También se creó un nuevo Comité de Comercialización, Innovación y Marketing.
En actualizaciones de liderazgo, Patricio Vargas pasó de CFO a Chief Optimization and Rationalization Officer, enfocándose en la estrategia de recuperación e iniciativas de M&A. Se nombró un CFO interino para manejar los procesos de reexpresión y la información financiera, mientras que Melissa Angelini fue designada VP de Finanzas interina, supervisando las operaciones financieras corporativas y las relaciones con inversores.
Procaps Group (NASDAQ: PROC)는 최근 주주총회 및 이사회 회의 후 중요한 변경 사항을 발표했습니다. 이 회사는 Alejandro Weinstein를 집행 회장으로 선출하고, Nicolas Weinstein, Ernesto Carrizosa 및 Jose Frugone가 이사회에 새롭게 합류했으며, David Yanovich는 이사직에서 사임했습니다.
회사는 감사, 보상, M&A 및 추천 위원회에 대한 새로운 구성원 및 의장을 정해 이사회를 재구성했습니다. 또한 상업, 혁신 및 마케팅을 위한 새로운 위원회도 만들어졌습니다.
리더십 업데이트에서 Patricio Vargas는 CFO에서 Chief Optimization and Rationalization Officer로 전환하여 회복 전략 및 M&A 이니셔티브에 집중하고 있습니다. 재조정을 위한 CFO가 임명되어 재무 보고 및 재무 재표시 프로세스를 담당하고 있으며, Melissa Angelini는 재무 담당 부사장 직무 대행으로 임명되어 기업 재무 운영 및 투자자 관계를 감독하고 있습니다.
Procaps Group (NASDAQ: PROC) a annoncé des changements significatifs suite à sa récente Assemblée des Actionnaires et à la réunion du Conseil d'Administration. L'entreprise a élu de nouveaux membres au Conseil, dont Alejandro Weinstein en tant que Président Exécutif, avec Nicolas Weinstein, Ernesto Carrizosa et Jose Frugone, tandis que David Yanovich a démissionné du Conseil.
L'entreprise a restructuré ses comités de Conseil, établissant de nouveaux membres et présidents pour les comités d'Audit, de Rémunération, de M&A et de Nomination. Un nouveau Comité Commercial, Innovation et Marketing a également été créé.
Dans les mises à jour de leadership, Patricio Vargas est passé de CFO à Chief Optimization and Rationalization Officer, en se concentrant sur la stratégie de redressement et les initiatives de M&A. Un CFO intérimaire a été nommé pour gérer les processus de retraitement et de reporting financier, tandis que Melissa Angelini a été nommée VP Finances par intérim, supervisant les opérations financières de l'entreprise et les relations avec les investisseurs.
Procaps Group (NASDAQ: PROC) gab bedeutende Änderungen nach der kürzlichen Hauptversammlung und Sitzung des Vorstands bekannt. Das Unternehmen wählte neue Vorstandsmitglieder, darunter Alejandro Weinstein als Executive Chairman, zusammen mit Nicolas Weinstein, Ernesto Carrizosa und Jose Frugone, während David Yanovich aus dem Vorstand zurückgetreten ist.
Das Unternehmen restrukturierte seine Ausschüsse, und ernannte neue Mitglieder und Vorsitzende für die Ausschüsse für Prüfung, Vergütung, M&A und Nominierung. Ein neuer Ausschuss für Kommerz, Innovation und Marketing wurde ebenfalls gegründet.
In den Führungsaktualisierungen wechselte Patricio Vargas vom CFO zum Chief Optimization and Rationalization Officer, wobei er sich auf die Turnaround-Strategie und M&A-Initiativen konzentrierte. Ein Interim CFO wurde ernannt, um die Rückberichtsprozesse und die Finanzberichterstattung zu übernehmen, während Melissa Angelini zur Interim VP of Finance ernannt wurde, die die Unternehmensfinanzoperationen und die Investorenbeziehungen beaufsichtigt.
- Appointment of experienced Board members with diverse expertise
- Creation of new Commercial, Innovation, and Marketing Committee to strengthen market position
- Strategic reorganization of leadership roles focusing on turnaround strategy and M&A initiatives
- Need for financial restatement process for 2023 and 2024 statements
- CFO transition during critical financial reporting period
Insights
The comprehensive restructuring of Procaps Group's leadership and governance framework signals potential challenges in financial reporting, given the CFO transition and restatement process. The appointment of multiple interim financial roles and creation of a Chief Optimization position suggests an urgent need for operational reorganization. The separation of financial duties between restatement processes and ongoing operations indicates heightened focus on regulatory compliance and financial accuracy.
The new board composition, featuring Alejandro Weinstein as Executive Chairman, demonstrates a shift toward stronger family influence in governance. The establishment of the Commercial, Innovation and Marketing Committee reflects strategic prioritization of market expansion and product development. However, the timing of these changes and the need for financial restatements may raise concerns about internal controls and past financial reporting practices.
The organizational changes reveal a complex financial situation requiring immediate attention. The bifurcation of the CFO role into three distinct positions - Chief Optimization Officer, Interim CFO and Interim VP of Finance - suggests significant financial challenges requiring specialized focus on restatements and operational optimization. This unusual structure typically indicates potential material weaknesses in financial reporting or underlying business performance issues.
The creation of a dedicated M&A committee alongside the appointment of a Chief Optimization and Rationalization Officer points to a likely restructuring phase ahead. These moves often precede significant strategic changes, possibly including divestitures or strategic acquisitions to improve operational efficiency. The focus on restatement of 2023 and 2024 financial statements could signal material accounting issues that may impact investor confidence in the short term.
MIAMI and BARRANQUILLA, Colombia, Dec. 20, 2024 (GLOBE NEWSWIRE) -- Procaps Group, S.A. (NASDAQ: PROC) (“Procaps” or the “Company”), a leading integrated LatAm healthcare and pharmaceutical services company, today announced significant outcomes from its recent Shareholders Meeting and subsequent Board of Directors meeting. These include changes to the Board composition, restructuring of Board committees, and updates to its executive leadership team.
The Shareholders Meeting marked an important milestone with the election of new members to the Board of Directors. The newly elected members bring a diverse range of expertise and strategic insight to guide Procaps’ future growth. Newly appointed Board members include:
- Mr. Alejandro Weinstein, Executive Chairman of the board
- Mr. Nicolas Weinstein
- Mr. Ernesto Carrizosa
- Mr. Jose Frugone
The company also acknowledges the resignation of Mr. David Yanovich from the Board of Directors. Procaps expresses its gratitude to Mr. Yanovich for his valuable contributions and dedication during his tenure.
The Board of Directors will be composed of Alejandro Weinstein, José Minski, Alberto Eguiguren, Nicolas Weinstein, Ernesto Carrizosa and Jose Frugone.
Board Committees Restructured
Following the Shareholders Meeting, the Board of Directors convened to redefine its committee structures. Key decisions include:
- Audit Committee
- New Members: Mr. Jose Frugone Domke, Mr. Alberto Eguiguren Correa, and Mr. Ernesto Carrizosa
- Chairperson: Mr. Jose Frugone Domke
- Compensation Committee
- New Members: Mr. Jose Frugone Domke, Mr. Alberto Eguiguren Correa, and Mr. Ernesto Carrizosa
- Chairperson: Mr. Alberto Eguiguren Correa
- Mergers & Acquisitions Committee
- New Members: Mr. Alejandro E. Weinstein and Mr. Ernesto Carrizosa
- Chairperson: Mr. Alejandro E. Weinstein
- Nominating Committee
- New Members: Mr. Jose Frugone Domke, Mr. Alberto Eguiguren Correa, and Mr. Nicolas A. Weinstein
- Chairperson: Mr. Nicolas A. Weinstein
Additionally, the newly established Commercial, Innovation, and Marketing Committee will serve as a collaborative platform between Board members and management to drive innovation, optimize commercial strategies, and strengthen Procaps’ market position.
Leadership Transition
Procaps Group is also pleased to announce the following executive leadership updates:
Effective immediately, Patricio Vargas will transition from his role as Chief Financial Officer (CFO) to assume the newly established position of Chief Optimization and Rationalization Officer. In this capacity, Patricio will drive the company’s turnaround strategy, leading M&A initiatives and strategic growth drivers to support Procaps’ long-term vision and resilience.
Additionally, an Interim CFO has been appointed to focus on the restatement process and financial reporting, including the preparation and signing of the company’s 2023 and 2024 financial statements and Form 20-F. This dedicated role ensures full alignment with Procaps’ efforts to achieve accuracy, transparency, and compliance during this critical period.
To complement the Interim CFO’s dedicated focus on the restatement and financial reporting, Melissa Angelini has been appointed as Interim Vice President of Finance. In this role, Melissa will oversee the broader corporate financial operations, including treasury management, FP&A, and related strategic financial functions, while continuing to lead the Investor Relations team. Her role ensures operational continuity and strategic alignment, supporting Procaps’ growth objectives and financial accountability until the company finalizes its new organizational structure.
“These changes reflect Procaps’ ongoing commitment to excellence in governance and leadership. We are confident that the new Board and committee structures, as well as management changes will drive sustained value for our stakeholders,” said Alejandro Weinstein, Executive Chairman of Procaps Group's Board of Directors.
Looking Ahead
Procaps Group remains dedicated to its mission of improving health and well-being through innovative pharmaceutical and healthcare solutions. The company’s proactive approach to governance, leadership, and innovation positions it for success in its key markets.
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 major changes were announced in Procaps Group's (PROC) December 2024 leadership restructuring?
Why is Procaps Group (PROC) appointing an Interim CFO in 2024?
What are the new Board committees established by Procaps Group (PROC)?
What is Patricio Vargas's new role at Procaps Group (PROC)?
