Morepen Labs to get Rs 433 crore from Corinth, promoters
Advertisement
New Delhi: Morepen Laboratories Limited has approved incoming investment of Rs. 433 crore in the Extra-Ordinary General Meeting (EGM) of the company. The members approved the issue and allotment of 58.50 million equity shares for cash to Corinth Investment Holdings AG, Switzerland at Rs.41.60 per share aggregating to Rs. 243.36 crores.
Shareholders also approved 50 million fully convertible warrants to a promoter group company Liquid Holdings Private Limited at Rs.38 per warrant/share aggregating up to Rs. 190 crores for cash to be converted into equity within 18 months, within the limits prescribed in SEBI (SAST) Regulations for acquisition of share/ voting rights in a financial year. The issue price of aforesaid securities is derived as per pricing formula prescribed by SEBI in SEBI (ICDR) Regulations.
The meeting of the shareholders of Morepen Laboratories was held on 20 th May, 2021 through video conferencing and other audio visual means. Shareholders also overwhelmingly voted to approve the resolution for issuance of convertible equity shares and warrants as proposed by the Board, over 99.97% voted in favour of the proposal.
This EGM was the next step for inclusion of Corinth Group, a global private investment Group, headquartered in Switzerland, which announced an extended USD 32.50 million in Morepen Laboratories Limited, out of a total USD 100 million investment in the promoter group.
The Total Fund Infusion in Morepen Laboratories Ltd, including investor funds and promoter's equity would be used in:
a) The expansion/scaling up of the company's R&D centre/facilities to meet the significantly enhanced Active Pharmaceutical Ingredient (API) demand, a market size of US$40 billion, that Morepen has in the pipeline for the next 3 years
b) Setting up new USFDA standard API plant to meet the significant ramp up in scale and pipeline the company is working on
c) Establishing a facility for Finished Dosages as per USFDA standards at Morepen's pharma complex in Baddi, Himachal Pradesh, to cater to highly sophisticated/regulated markets such as the USA and Japan
d) Investment into diagnostics facilities including the manufacture of critical inputs/components/enzymes to meet regulated market standards. India is seeing an exponential jump in household spend on Point of Care/Home Diagnostics and Oxygen Concentrators and other life support systems with demand currently outstripping supply
e) Investment in new products and brands under the Dr Morepen umbrella, an existing household brand, to leverage its pan India distribution/supply chain and exponential growth in online sales
f) Investment in new age Personal Care/Skin Care brands "Gubb" and "Happier", as well as to leverage Pan India pharmacy/retail chain network to significantly scale up distribution
Our comments section is governed by our Comments Policy . By posting comments at Medical Dialogues you automatically agree with our Comments Policy , Terms And Conditions and Privacy Policy .
Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.
NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.