Procaps Group Receives Additional Delinquency Letter

Rhea-AI Summary

Procaps Group (NASDAQ: PROC) has received an additional delinquency notice from Nasdaq on December 31, 2024, regarding its failure to file interim financial statements for the period ended June 30, 2024. This filing was required by December 31, 2024, and the delay is related to previously disclosed issues with the Company's Form 20-F filing for fiscal year 2023.

The notice indicates that the Nasdaq Hearings Panel will consider this additional delinquency in their deliberations regarding Procaps' continued listing status. The company plans to respond to the notice and present its compliance plan at an upcoming Panel hearing.

Positive

• None.

Negative

• Received additional Nasdaq delinquency notice for missing June 2024 interim financial statements filing
• Continued listing on Nasdaq at risk due to multiple filing delinquencies
• Ongoing delays in financial reporting indicate potential internal control issues

Insights

Financial Compliance Expert

This delinquency notice represents a serious regulatory compliance issue for Procaps Group. The company has failed to file both its annual Form 20-F for 2023 and now its interim financial statements for H1 2024, triggering multiple Nasdaq listing rule violations. With a market cap of $264 million, this continued non-compliance puts Procaps at significant risk of delisting from Nasdaq, which would severely impact trading liquidity and institutional investor access. The upcoming Panel hearing is important - historically, companies failing to meet multiple filing deadlines face heightened scrutiny and stricter compliance timelines. The lack of current financial statements raises red flags about potential underlying accounting issues or internal control weaknesses. While a delisting isn't immediate, the company's ability to maintain its Nasdaq listing now hinges entirely on presenting a credible compliance plan at the Panel hearing.

Corporate Governance Analyst

The cascading nature of these filing delays - from annual reports to interim statements - points to potentially systemic issues in Procaps' financial reporting infrastructure. For a LatAm healthcare company operating in multiple jurisdictions, such reporting gaps could indicate challenges with consolidated financial reporting or cross-border accounting reconciliation. The timing is particularly concerning as it spans multiple reporting periods, suggesting this isn't a one-off issue. The lack of transparent financial data creates an information vacuum for stakeholders and raises serious corporate governance concerns. These circumstances typically lead to increased scrutiny from auditors and regulators, potentially resulting in higher compliance costs and strained relationships with financial partners.

MIAMI and BARRANQUILLA, Columbia, Jan. 03, 2025 (GLOBE NEWSWIRE) -- Procaps Group, S.A. (NASDAQ: PROC) (“Procaps” or the “Company”), a leading integrated LatAm healthcare and pharmaceutical services company, today announced that, as anticipated, on December 31, 2024, the Company received notice from The Nasdaq Stock Market LLC (“Nasdaq”) of an additional filing delinquency relating to the Company’s interim financial statements for the period ended June 30, 2024.

The interim financial statements were required to be filed with Nasdaq by December 31, 2024, but were not for the reasons previously disclosed in connection with the delay in the filing of the Company’s Form 20-F for the fiscal year ended December 31, 2023, in contravention of Nasdaq Listing Rule 5250(c)(2).

The notice indicated that the Nasdaq Hearings Panel (the “Panel”) will consider the additional filing delinquency in its deliberations regarding the Company’s request for continued listing on Nasdaq. The Company plans to timely respond to the most recent notice from Nasdaq and otherwise present its plan to evidence full compliance with the Company’s applicable filing requirements at its upcoming hearing before the Panel. This announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure by an issuer in receipt of an additional delinquency notice from Nasdaq.

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:
ir@procapsgroup.com
investor.procapsgroup.com

Forward-Looking Statements

This press release includes "forward-looking statements." Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements with respect to revenues, earnings, performance, strategies, synergies, prospects, forecasts and other aspects of the businesses of Procaps are based on current expectations that are subject to risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, the risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission ("SEC") by Procaps. Accordingly, forward-looking statements, including any projections or analysis, should not be viewed as factual and should not be relied upon as an accurate prediction of future results. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on Procaps. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties, including those included under the header "Risk Factors" in Procaps' annual report on Form 20-F filed with the SEC, as well as Procaps' other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, you should not put undue reliance on these statements.

FAQ

What is the latest Nasdaq delinquency notice received by Procaps Group (PROC)?

On December 31, 2024, Procaps Group received a delinquency notice from Nasdaq for failing to file its interim financial statements for the period ended June 30, 2024, which were due by December 31, 2024.

How many financial reports is PROC currently delinquent in filing?

Based on the press release, PROC is delinquent in filing both their Form 20-F for fiscal year 2023 and their interim financial statements for the period ended June 30, 2024.

What are the potential consequences for PROC regarding its Nasdaq listing status?

The additional delinquency will be considered by the Nasdaq Hearings Panel in their deliberations regarding the company's continued listing status, potentially putting PROC's Nasdaq listing at risk.

What actions is PROC taking to address the Nasdaq delinquency notices?

PROC plans to respond to the notice and present its compliance plan at an upcoming hearing before the Nasdaq Hearings Panel.