Procaps Group Receives Nasdaq Notice Related to Late Filing of its Form 20-F

Rhea-AI Summary

Procaps Group, a prominent healthcare and pharmaceutical services company in Latin America, has received a delinquency notice from the Nasdaq Stock Market. The notice, dated May 16, 2024, indicates that Procaps has failed to timely file its annual report on Form 20-F for the fiscal year ending December 31, 2023. As per Nasdaq Listing Rule 5250(c)(1), Procaps has 60 days to submit a compliance plan. If accepted, they may receive an extension until November 11, 2024, to regain compliance. Should Nasdaq reject the plan, Procaps has the option to appeal. The company is committed to filing the overdue report or submitting the compliance plan within the allotted period and is taking steps to resolve the issue.

Positive

• Procaps is committed to regaining compliance with Nasdaq listing requirements.
• Company has a clear plan to either file the overdue Form 20-F or submit a compliance plan within 60 days.
• Potential extension until November 11, 2024, to regain compliance if the plan is accepted.
• Procaps is taking diligent steps to address the issue promptly.

Negative

• Procaps failed to file its annual report on Form 20-F for the fiscal year ending December 31, 2023, on time.
• Non-compliance with Nasdaq Listing Rule 5250(c)(1) poses a risk of delisting.
• The company has received a delinquency notice from Nasdaq, which may impact investor confidence.
• Uncertainty about whether Nasdaq will accept the compliance plan or require an appeal.

MIAMI & BARRANQUILLA, Colombia--(BUSINESS WIRE)-- Procaps Group (Nasdaq: PROC) (“Procaps” or the “Company”), a leading integrated LatAm healthcare and pharmaceutical services company, today announced that it has received a letter from the Nasdaq Stock Market, dated May 16, 2024 (the “Delinquency Letter”), notifying the Company that it is not in compliance with the requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) because it did not timely file its annual report on Form 20-F for the year ended December 31, 2023 (the “2023 20-F”).

In accordance with Nasdaq Listing Rules, the Company has 60 calendar days from the date of the Delinquency Letter to submit a plan to regain compliance with Nasdaq Listing Rules (the “Compliance Plan”). If Nasdaq accepts the Compliance Plan, Nasdaq may grant the Company an extension until November 11, 2024 to regain compliance. If Nasdaq does not accept the Compliance Plan, the Company will have the opportunity to appeal that decision to the Nasdaq Hearings Panel.

The Company intends either to file its 2023 20-F or submit the Compliance Plan within the prescribed 60-day period. The Company will continue to work diligently with the objective of filing the Form 20-F as soon as practicable and will work diligently to submit the Plan promptly and take the necessary steps to regain compliance as soon as practicable.

This announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification.

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 more than 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.

Forward-Looking Statements

The foregoing contains 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, including, without limitation, including the Company’s expectations about the timing of completion and filing of the 2023 20-F, statements related to the Company’s Plan, and timing and actions taken to regain compliance with Nasdaq. These forward-looking statements involve risks and uncertainties, 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 review; the conclusions of management (and the timing of the conclusions) concerning matters relating to the internal review; the timing of the review by, and the conclusions of, the Company’s independent registered public accounting firm regarding the internal review and the Company’s financial statements; the possibility that errors may be identified; and the risk that the completion and filing of the Form 20-F will take longer than expected. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240517286964/en/

Investor Contact:

Melissa Angelini

ir@procapsgroup.com

investor.procapsgroup.com

Source: Procaps Group, S.A.

FAQ

What did Procaps announce regarding its Nasdaq listing?

Procaps announced that it received a Nasdaq delinquency notice for not filing its annual report on Form 20-F for the fiscal year ending December 31, 2023, on time.

When did Procaps receive the delinquency notice from Nasdaq?

Procaps received the delinquency notice from Nasdaq on May 16, 2024.

What is Procaps' stock symbol?

Procaps' stock symbol is PROC.

What is the compliance deadline for Procaps' Form 20-F filing?

Procaps has 60 days from the date of the delinquency notice to submit a compliance plan or file the Form 20-F.

What happens if Nasdaq accepts Procaps' compliance plan?

If Nasdaq accepts Procaps' compliance plan, the company may be granted an extension until November 11, 2024, to regain compliance.

What are the consequences if Procaps fails to regain compliance with Nasdaq rules?

If Procaps fails to regain compliance, it risks being delisted from the Nasdaq stock market.