Breaking News: Procaps Says It Will Fail to File Annual Report on Time

Barranquilla, Colombia based pharmaceutical manufacturer Procaps Group (NASDAQ: PROC) today announced that it has determined it is unable to file its Annual Report on Form 20-F for the fiscal year ended December 31, 2023, within the prescribed time period.

Additional time is necessary to prepare and complete the company’s review of its financial statements for the year ended December 31, 2023, in order for the company to file its annual report on Form 20-F, including with respect to an ongoing internal investigation initiated by the company´s Audit Committee with the assistance of external advisors into matters involving the company’s historical accounting treatment and associated financial statement disclosure related to a 2012 loan in the amount of approximately $2.5 million that involved related parties.

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The company is working diligently to complete its financial statements in order to file its Form 20-F as soon as practicable before May 15, 2024.

The company expects to hold a business update call in conjunction with the filing of its Form 20-F and Earnings Release and expects to provide a further update regarding the date of the business update call.

Procaps asked in a statement that all questions be sent to [email protected]. Due to applicable securities laws, the company is unable to provide further details beyond what is publicly disclosed, and accordingly the company expects to address submitted questions in its applicable reports and during its conference call once the results are published.

Procaps has made preliminary determinations of certain results of operations. Revenue for the year ended December 31, 2023, is currently expected to be between approximately $425 and $433 million, compared to $409.9 million for the year ended December 31, 2022, with the difference primarily due to an increase in sales. Income for the year ended December 31, 2023, is currently expected to be between approximately $50 and $55 million, compared to income of $42.5 million for the year ended December 31, 2022, with the difference primarily due to the accounting treatment for non-cash shares and warrants held in escrow and an increase in non-recurring income.