ImmuCell Announces Approval of Principal Terms of a $3 Million Debt Facility

PORTLAND, Maine, June 15, 2023 (GLOBE NEWSWIRE) -- ImmuCell Corporation (Nasdaq: ICCC) (“ImmuCell” or the “Company”), a growing animal health company that develops, manufactures and markets scientifically proven and practical products that improve the health and productivity of dairy and beef cattle, today announced the approval by Gorham Savings Bank (GSB) and the Finance Authority of Maine (FAME) of the principal terms of a $3 million debt facility with the Company.

The debt facility is anticipated to be comprised of a $2 million loan underwritten by GSB and partially insured by FAME and a $1 million direct loan from FAME. Both loans are expected to be repayable under seven-year amortization schedules with balloon payments due in three years. The loans have been approved by both the GSB and the FAME boards but remain subject to a number of contingencies and conditions, including but not limited to the completion of an environmental impact assessment, finalization of documentation, and other standard and customary closing conditions.

“We are extremely fortunate to have the support of our GSB and FAME business partners,” commented Michael F. Brigham, President and CEO of ImmuCell. “This funding will improve our cash position after our first quarter loss and will help us move forward confidently as we rebound from a production contamination event, increasing production capacity to address our outstanding order backlog of orders, which aggregated approximately $8.2 million as of June 9, 2023.”

“FAME is pleased to partner with Gorham Savings Bank in supporting ImmuCell’s plans for growth and success,” stated Carlos R. Mello, FAME CEO.

The Company is being driven by data as it rebounds from a temporary production contamination problem. Product is tested at the beginning, middle and end of the production process. From February 1, 2023 through June 9, 2023, the incoming quality control tests have been within specifications approximately 93% of the time. From mid-February through June 9, 2023, the incoming quality control tests have been within specifications approximately 97% of the time. The mid-process and end-process quality control tests have both consistently passed 100% of the time during these same periods. The Company anticipates that this improvement from the depth of the contamination problem in January will allow it to resume full production for the second half of 2023 and forward.