ProPhase Labs Secures Global Private Equity Backing, Nears Major Lozenge Deal, Adds Seasoned Industry Expert, and Plans Significant Cost-Cutting Measures
ProPhase Labs (NASDAQ: PRPH) has announced several strategic initiatives. The company has secured a flexible, low-interest rate debt financing agreement with a global private equity fund, which is expected to eliminate the need for future equity financing in the near term. The agreement also opens opportunities to distribute ProPhase TK supplements throughout Asia.
The company is in final negotiations with a major lozenge brand for a contract that would fully utilize Pharmaloz's upcoming high-tech production line #2, which is positioned to be one of North America's most advanced lines with enhanced automation and efficiency. The company estimates a 12-month timeline for Line #1.
ProPhase Labs (NASDAQ: PRPH) ha annunciato varie iniziative strategiche. L'azienda ha ottenuto un accordo di finanziamento debitorio flessibile a basso interesse con un fondo di private equity globale, il quale dovrebbe eliminare la necessità di un finanziamento azionario futuro a breve termine. L'accordo apre anche opportunità per distribuire i supplementi ProPhase TK in tutta l'Asia.
L'azienda è in fase di trattativa finale con un importante marchio di pastiglie per un contratto che sfrutterebbe appieno la prossima linea di produzione ad alta tecnologia #2 di Pharmaloz, che si posiziona come una delle linee più avanzate del Nord America, con maggiore automazione ed efficienza. L'azienda stima un periodo di 12 mesi per la Linea #1.
ProPhase Labs (NASDAQ: PRPH) ha anunciado varias iniciativas estratégicas. La compañía ha asegurado un acuerdo de financiación de deuda flexible con una tasa de interés baja con un fondo de capital privado global, lo que se espera que elimine la necesidad de futuras financiaciones de capital en el corto plazo. El acuerdo también abre oportunidades para distribuir los suplementos ProPhase TK en toda Asia.
La empresa se encuentra en negociaciones finales con una importante marca de pastillas para un contrato que utilizaría completamente la próxima línea de producción de alta tecnología #2 de Pharmaloz, que se posiciona para ser una de las líneas más avanzadas de América del Norte, con mayor automatización y eficiencia. La compañía estima un plazo de 12 meses para la Línea #1.
ProPhase Labs (NASDAQ: PRPH)는 여러 전략적 이니셔티브를 발표했습니다. 이 회사는 글로벌 사모펀드와의 저금리 유연한 부채 금융 계약을 체결하여 가까운 미래에 추가적인 자본 조달의 필요성을 없앨 것으로 예상하고 있습니다. 이 계약은 아시아 전역에 ProPhase TK 보충제를 배포할 기회를 제공합니다.
회사는 Pharmaloz의 차세대 고기술 생산라인 #2를 충분히 활용할 수 있는 계약을 위해 주요 로젠지 브랜드와 최종 협상 중에 있으며, 이 생산라인은 북미에서 가장 진보된 생산라인 중 하나로 자리 잡을 예정입니다. 자동화와 효율성이 향상됩니다. 회사는 라인 #1의 타임라인을 12개월로 추정하고 있습니다.
ProPhase Labs (NASDAQ: PRPH) a annoncé plusieurs initiatives stratégiques. L'entreprise a obtenu un accord de financement de dettes flexible à faible taux d'intérêt avec un fonds de capital-investissement mondial, ce qui devrait éliminer le besoin de financement par actions à court terme. L'accord ouvre également des opportunités pour distribuer les suppléments ProPhase TK à travers l'Asie.
L’entreprise est en négociations finales avec une grande marque de pastilles pour un contrat qui exploiterait pleinement la future ligne de production haute technologie #2 de Pharmaloz, qui devrait être l'une des lignes les plus avancées en Amérique du Nord, avec une automatisation et une efficacité accrues. L'entreprise estime un délai de 12 mois pour la ligne #1.
ProPhase Labs (NASDAQ: PRPH) hat mehrere strategische Initiativen angekündigt. Das Unternehmen hat eine flexible, niedrig verzinste Schuldenfinanzierungsvereinbarung mit einem globalen Private-Equity-Fonds gesichert, die voraussichtlich die Notwendigkeit einer zukünftigen Eigenkapitalfinanzierung in naher Zukunft beseitigen wird. Die Vereinbarung eröffnet auch Möglichkeiten zur Verteilung von ProPhase TK-Nahrungsergänzungsmitteln in ganz Asien.
Das Unternehmen befindet sich in den Abschlussverhandlungen mit einer großen Lutschtablettenmarke für einen Vertrag, der die kommende hochmoderne Produktionslinie #2 von Pharmaloz vollständig nutzen würde, die als eine der fortschrittlichsten Linien in Nordamerika mit verbesserter Automatisierung und Effizienz gilt. Das Unternehmen schätzt einen 12-Monats-Zeitraum für die Linie #1.
- Secured flexible, low-interest rate debt financing from a global private equity fund
- Potential elimination of need for future equity financing
- New distribution opportunities for supplements in Asian markets
- Near completion of negotiations with major lozenge brand
- Development of advanced production line with enhanced automation and efficiency
- None.
Insights
The secured low-interest debt financing from a global private equity fund marks a significant strategic shift for ProPhase Labs. This arrangement provides important working capital flexibility while minimizing dilution risk for existing shareholders - a key concern given the company's modest
The pending major lozenge contract could be transformative for the Pharmaloz division. With the new high-tech production line investment, this would significantly boost manufacturing capacity utilization and operational efficiency. However, investors should note that contract negotiations are still ongoing and financial terms haven't been disclosed yet.
The investment in Line #2 with advanced automation capabilities positions Pharmaloz as a leading-edge manufacturer in North America's lozenge production sector. Modern automated lines typically reduce labor costs by
The Company will review on Thursday, December 12th, at 12:00 p.m. EST.
GARDEN CITY, NY, Dec. 11, 2024 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ: PRPH) (“ProPhase” or the “Company”), a next-generation biotech, genomics, and diagnostics company, today provided updates on several key initiatives.
Securing Low-Interest Rate Financing from a Global Private Equity Fund
ProPhase has secured an agreement with a billion-dollar global private equity fund, providing flexible, low-interest rate debt financing as needed. Based on the current operating plans and financial forecasts, the Company believes that the aforementioned debt financing arrangement will eliminate the necessity for future equity financing in the near term and provides the Company with the strategic freedom to focus on and grow its core businesses until a meaningful liquidity event occurs and/or until the Company achieves profitability. Additionally, ProPhase will explore opportunities with the fund to distribute its ProPhase TK supplements—Legendz XL, Legendz Triple Edge, and the forthcoming Equivir—throughout Asia. Equivir is a clinically tested dietary supplement that serves as an immune booster, both prophylactically and therapeutically.
Pharmaloz Capacity Expansion and Major New Contract
The Company is entering the final phase of contract negotiations with a major lozenge brand. This partnership would fully utilize Pharmaloz’s forthcoming high-tech production line #2, set to be one of North America’s most advanced lines, offering enhanced automation, efficiency, and energy savings. For Line #1, the Company currently estimates a 12-month forward-looking run rate of
Strategic Executive Hiring
To support these Pharmaloz growth initiatives, ProPhase has hired Jay Schwartz, a 30-year veteran in the consumer health sector. Mr. Schwartz will play a key role in finalizing the large lozenge contract, overseeing the installation of line #2, and preparing it for full-scale utilization. Furthermore, he will assist the Company as we actively pursue strategic alternatives including a potential sale of Pharmaloz.
Implementing Significant Cost Reductions
ProPhase is finalizing a comprehensive set of cost-saving measures targeting its non-core operations. These efforts are expected to reduce operating expenses by at least
Executive Perspective
“The partnership with this global private equity fund should secure, low-interest rate financing at our disposal, with the goal of eliminating discounted equity offerings in the near-term,” said Ted Karkus, CEO of ProPhase Labs. “This capital access provides the foundation we need as we finalize a transformative lozenge contract growing revenues just at Pharmaloz from an estimated
The Company will present in the live Virtual Non-Deal Roadshow Series hosted by Renmark Financial Communications Inc. Ted Karkus, Chairman & Chief Executive Officer, will present on Thursday, December 12th, at 12:00 p.m. EST.
REGISTER HERE:
https://www.renmarkfinancial.com/events/renmark-virtual-non-deal-roadshow-nasdaq-prph-q78s0Dbkp8
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About ProPhase Labs
ProPhase Labs Inc. (Nasdaq: PRPH) (“ProPhase”) is a next-generation biotech, genomics and diagnostics company. Our goal is to create a healthier world with bold action and the power of insight. We’re revolutionizing healthcare with industry-leading Whole Genome Sequencing solutions, while developing potential game changer diagnostics and therapeutics in the fight against cancer. This includes a potentially life-saving cancer test focused on early detection of esophageal cancer and potential breakthrough cancer therapeutics with novel mechanisms of action. Our world-class CLIA labs and cutting-edge diagnostic technology provide wellness solutions for healthcare providers and consumers. We develop, manufacture, and commercialize health and wellness solutions to enable people to live their best lives. We are committed to executional excellence, smart diversification, and a synergistic, omni-channel approach. ProPhase Labs’ valuable subsidiaries, their synergies, and significant highlight our potential for long-term value.
Forward Looking Statements
Except for the historical information contained herein, this document contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategy, plans, objectives and initiatives, including our expectation to enter into new agreements for Pharmaloz, our expectations regarding the future revenue growth potential of each of our subsidiaries, our expectations regarding future liquidity events and potential reduction in operating expenses from cost-saving measures targeting our non-core operations, , the anticipated timing for the installation of an additional lozenge line and its ability to increase capacity and revenue, our anticipated expenses, our ability to obtain funding for our operations and the sufficiency of our cash resources. Management believes that these forward-looking statements are reasonable as and when made. However, such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include but are not limited to our ability to obtain and maintain necessary regulatory approvals, general economic conditions, consumer demand for our products and services, challenges relating to entering into and growing new business lines, the competitive environment, and the risk factors listed from time to time in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and any other SEC filings. The Company undertakes no obligation to update forward-looking statements except as required by applicable securities laws. Readers are cautioned that forward-looking statements are not guarantees of future performance and are cautioned not to place undue reliance on any forward-looking statements.
Media Relations and Institutional Investor Contact:
ProPhase Labs, Inc.
267-880-1111
investorrelations@prophaselabs.com
Retail Investor Relations Contact:
Renmark Financial Communications
John Boidman
514-939-3989
Jboidman@renmarkfinancial.com
Source: ProPhase Labs, Inc
FAQ
What financing has ProPhase Labs (PRPH) secured in December 2023?
How will the new debt financing impact PRPH's future equity needs?
What new market expansion opportunities does PRPH's private equity deal include?
What is the status of PRPH's Pharmaloz production line expansion?
