Procaps Group Receives Delisting Notice From Nasdaq
Procaps Group (NASDAQ: PROC) has received a delisting notice from Nasdaq due to non-compliance with listing rules 5250(c)(1) and 5250(c)(2), specifically for failing to file periodic and interim financial reports. The company's ordinary shares will transition to trading on the OTC Expert Market starting February 4, 2025.
The pharmaceutical company stated that this transition is not expected to impact its business operations or SEC reporting requirements. The company will continue to operate as a leading integrated LatAm healthcare and pharmaceutical services provider.
Procaps Group (NASDAQ: PROC) ha ricevuto un avviso di delisting da Nasdaq a causa della non conformità con le regole di quotazione 5250(c)(1) e 5250(c)(2), in particolare per non aver presentato rapporti finanziari periodici e intermedi. Le azioni ordinarie della società passeranno a essere scambiate sul OTC Expert Market a partire dal 4 febbraio 2025.
La società farmaceutica ha dichiarato che questa transizione non dovrebbe influenzare le sue operazioni commerciali o i requisiti di reporting della SEC. L'azienda continuerà a operare come uno dei principali fornitori di servizi sanitari e farmaceutici integrati in America Latina.
Procaps Group (NASDAQ: PROC) ha recibido un aviso de deslistado de Nasdaq debido al incumplimiento de las reglas de listado 5250(c)(1) y 5250(c)(2), específicamente por no presentar informes financieros periódicos e interinos. Las acciones ordinarias de la empresa comenzarán a cotizar en el OTC Expert Market a partir del 4 de febrero de 2025.
La compañía farmacéutica declaró que esta transición no se espera que impacte sus operaciones comerciales ni los requisitos de reporting de la SEC. La empresa continuará operando como un importante proveedor de servicios farmacéuticos y de salud integrados en América Latina.
Procaps Group (NASDAQ: PROC)는 정기 및 중간 재무 보고서를 제출하지 않아 Nasdaq의 상장 규정 5250(c)(1) 및 5250(c)(2)에 대한 불이행으로 delisting 통지를 받았습니다. 회사의 보통주는 2025년 2월 4일부터 OTC Expert Market에서 거래될 예정입니다.
제약회사는 이번 전환이 사업 운영이나 SEC 보고 요건에 아무런 영향을 미치지 않을 것이라고 밝혔습니다. 회사는 라틴 아메리카의 주요 통합 보건 및 제약 서비스 제공업체로 계속 운영될 것입니다.
Procaps Group (NASDAQ: PROC) a reçu un avis de radiation de Nasdaq en raison de la non-conformité aux règles de cotation 5250(c)(1) et 5250(c)(2), en particulier pour ne pas avoir déposé les rapports financiers périodiques et intermédiaires. Les actions ordinaires de l'entreprise commenceront à être négociées sur le OTC Expert Market à partir du 4 février 2025.
L'entreprise pharmaceutique a déclaré que cette transition ne devrait avoir aucun impact sur ses opérations commerciales ou sur les exigences de reporting de la SEC. L'entreprise continuera à fonctionner en tant que principal fournisseur de services de santé et pharmaceutiques intégrés en Amérique latine.
Procaps Group (NASDAQ: PROC) hat eine Delisting-Mitteilung von Nasdaq erhalten, aufgrund von Nichteinhaltung der Listungsregeln 5250(c)(1) und 5250(c)(2), insbesondere wegen der Nichterfüllung der Pflicht zur Einreichung von regelmäßigen und Zwischenfinanzberichten. Die Stammaktien des Unternehmens werden ab dem 4. Februar 2025 auf dem OTC Expert Market gehandelt.
Das Pharmaunternehmen erklärte, dass diese Umstellung voraussichtlich keine Auswirkungen auf die Geschäftstätigkeit oder die Berichtspflichten gegenüber der SEC haben wird. Das Unternehmen wird weiterhin als führender integrierter Anbieter von Gesundheits- und Pharmadienstleistungen in Lateinamerika agieren.
- Company maintains SEC reporting requirements
- Core business operations remain unaffected
- Delisting from Nasdaq due to failure to file required financial reports
- Downgrade to OTC Expert Market trading
- Non-compliance with fundamental listing requirements indicates potential financial reporting issues
Insights
The announced delisting of Procaps Group from Nasdaq represents a severe blow to the company's market presence and investor accessibility. The transition to the OTC Expert Market - a specialized, broker-dealer-only platform - is particularly concerning as it's more restrictive than the regular OTC markets, significantly limiting retail investor participation.
The failure to file periodic and interim financial reports (violating Rules 5250(c)(1) and 5250(c)(2)) raises fundamental concerns about corporate governance and financial transparency. This situation typically triggers several cascading effects:
- Institutional investors often have mandates preventing them from holding non-exchange listed securities, potentially forcing automatic liquidation
- Index funds and ETFs will need to remove PROC from their portfolios
- Reduced analyst coverage and market making activity
- Significantly decreased trading volume and price discovery efficiency
- Higher cost of capital for future financing
While the company states this won't affect business operations or SEC reporting requirements, the market implications are substantial. The Expert Market designation is particularly restrictive compared to other OTC tiers, as it limits trading to broker-dealers and certain institutional investors, effectively cutting off most retail investor access.
The LatAm healthcare sector context makes this development even more significant, as Procaps represents one of the few publicly traded companies in this space. The delisting could impact not just the company but also broader investor confidence in the regional healthcare sector.
MIAMI and BARRANQUILLA, Columbia, Feb. 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 the Company received a notice from The Nasdaq Stock Market LLC (“Nasdaq”) that it has determined to delist the Company’s ordinary shares on Nasdaq. The delisting is a result of the Company’s failure to demonstrate compliance with Nasdaq Listing Rules 5250(c)(1) and 5250(c)(2) for failing to file periodic and interim financial reports. As a result of the forgoing, the Company’s ordinary shares are expected to commence trading on the Expert Market operated by the OTC Markets Group, Inc. (“OTC”), commencing on February 4, 2025.
The transition of the Company’s ordinary shares to the OTC Expert Market is not expected to affect the Company’s business operations or its reporting requirements under the rules of the Securities and Exchange Commission (“SEC”).
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 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
Why is Procaps Group (PROC) being delisted from Nasdaq?
When will PROC stock start trading on the OTC Expert Market?
Will the Nasdaq delisting affect Procaps Group's business operations?
What are the implications of PROC moving to OTC Expert Market for investors?
