IGEA Pharma N.V.

IGEA to update on strategic refocusing decisions.

IGEA Pharma N.V. / Key word(s): Miscellaneous IGEA Pharma N.V.: IGEA to update on strategic refocusing decisions. 30-May-2023 / 01:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. IGEA to update on strategic refocusing decisions.

 

Hoofddorp, the Netherlands, 30 May 2023. IGEA Pharma N.V. (SIX: IGPH) today announced a refocusing on its industrial process segment.

 

Pursuant to the new board of directors in office since end of April 2023, the expected setup of an own industrial center for transforming CBD and other vegetable-based matrices into high value products for the health prevention, cosmeceutical and other selected industries in Biasca, Switzerland, has been stagnating for almost two years now, the funding remainsuncertain- the two-years convertible bond commitment with UAE-based Negma group activated in early 2021 has meanwhile ended –and the start of the activities still unpredictable.

 

In the best interests of IGEA and its stakeholders, the board has therefore decided to sell the industrial process segment. The transaction will strongly reduce IGEA’s net passive exposure in 2023 and will allow the board of directors to focus onfurther solutions in the cosmeceutical industry,which continues to be attractive with an over 8% CAGR growth expected within 2029 (based on a ‘Fortune Business Insight’ report of 2022).

 

Theboard of directors furthermore indicates that the refocusing will also include the simplification of the group’s corporate and operational structure, with the removal of some in-between entities that today are non-active or active only in part, as well as all such other entities that did not generate revenue in the distribution segment during 2022 due to a defocusing of their activities, as previously disclosed on 15 May 2023.