ImmuCell Receives $500,000 Loan from the Maine Technology
June 16 2020 - 8:00AM
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 calves, today announced receipt of a $500,000
subordinated loan from the Maine Technology Institute (MTI), whose
mission is to support Maine’s innovation economy.
This loan supports the Company’s investments to increase the
production capacity of First Defense®, to complete
the development of Re-Tain™ and to bring the
formulation and aseptic filling services for
Re-Tain™ in-house after FDA approval and market
launch.
The first two-plus years of the loan are interest-free with no
required principal payments. Principal and interest payments at 5%
per annum are due quarterly over the five-year period beginning
during the fourth quarter of 2022. The loan may be prepaid without
penalty at any time.
“This funding represents another building block in our financing
strategy to pay for the expansion of our First
Defense® production capacity and the commercialization of
Re-Tain™,” commented Michael F. Brigham, President
and CEO. “The support from the State of Maine with this innovative
financial instrument helps us move forward confidently with our
growth investments and employee hiring plans.”
Having recently received a Certificate of Occupancy for the
14,300 square feet of space that it has leased and renovated at 175
Industrial Way in Portland, the Company has initiated the move-in
and USDA site licensing processes. The leasehold improvements are
necessary to increase the Company’s annual production capacity for
the First Defense® product line from approximately
$18 million to approximately $27 million. Phase I of this expansion
project (that being the relocation of the capsule assembly
functions to the new facility to create space for the installation
of increased freeze-drying capacity) is most critical to filling
the current backlog of orders. This MTI funding helps the Company
move straight ahead with Phase II of this expansion project (that
being the relocation of the gel assembly functions to the new
facility to create space for the installation of increased liquid
processing capacity). A video tour of the new production space is
available at https://youtu.be/bR4Dp8raAEc.
About MTI:MTI is a publicly financed, private,
nonprofit organization created by the Legislature in 1999 to
stimulate research and development activity leading to the
commercialization of new products, processes and services in the
state’s seven targeted technology sectors. MTI programs are either
loans, equity investments, or grants designed to enhance the
competitive position of those sectors and increase the likelihood
that one or more of these sectors will support clusters of
industrial activity and create quality jobs across Maine. For
more information visit www.mainetechnology.org.
About ImmuCell: ImmuCell Corporation's
(Nasdaq: ICCC) purpose is to create
scientifically-proven and practical products that improve the
health and productivity of dairy and beef calves. ImmuCell
manufactures and markets First Defense®, providing
Immediate Immunity™ to newborn dairy and beef
calves, and is in the late stages of developing
Re-Tain™, a novel treatment for subclinical
mastitis without a milk discard requirement that provides an
alternative to traditional antibiotics. Press releases and other
information about the Company are available at:
http://www.immucell.com. For up-to-date photos of the Company’s
First Defense® manufacturing facility expansion,
please visit https://immucell.com/construction/.
Contacts: |
Michael F. Brigham, President and CEO |
|
ImmuCell Corporation |
|
(207) 878-2770 |
|
|
|
Joe Diaz, Robert Blum and Joe Dorame |
|
Lytham Partners, LLC |
|
(602) 889-9700 |
|
iccc@lythampartners.com |
Cautionary Note Regarding Forward-Looking Statements
(Safe Harbor Statement):This Press Release contains
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such statements include, but are not limited
to, any statements relating to: our plans and strategies for our
business; projections of future financial or operational
performance; the timing and outcome of pending or anticipated
applications for regulatory approvals; factors that may affect the
dairy and beef industries and future demand for our products; the
extent, nature and duration of the COVID-19 pandemic and its
consequences, and their direct and indirect impacts on the
Company’s production activities, operating results and financial
condition and on the customers and markets the Company serves; the
scope and timing of ongoing and future product development work and
commercialization of our products; future costs of product
development efforts; the estimated prevalence rate of subclinical
mastitis and dairy producers’ level of interest in treating
subclinical mastitis given current economic and market conditions;
the expected efficacy of new products; estimates about the market
size for our products; future market share of and revenue generated
by current products and products still in development; our ability
to increase production output and reduce costs of goods sold
associated with our new product, Tri-Shield
First Defense®; the future adequacy of our own
manufacturing facilities or those of third parties with which we
have contractual relationships to meet demand for our products on a
timely basis; the anticipated costs of (or time to complete)
planned expansions of our manufacturing facilities and the adequacy
of our funds available for these projects; the continuing
availability to us on reasonable terms of third-party providers of
critical products or services; the robustness of our manufacturing
processes and related technical issues; estimates about our
production capacity, efficiency and yield; the future adequacy of
our working capital and the availability and cost of third-party
financing; future regulatory requirements relating to our products;
future expense ratios and margins; future compliance with bank debt
covenants; costs associated with sustaining compliance with current
Good Manufacturing Practice (cGMP) regulations in our current
operations and attaining such compliance for the facility to
produce the Nisin Drug Substance; implementation of international
trade tariffs that could reduce the export of dairy products, which
could in turn weaken the price received by our customers for their
products; our effectiveness in competing against competitors within
both our existing and our anticipated product markets; the
cost-effectiveness of additional sales and marketing expenditures
and resources; anticipated changes in our manufacturing
capabilities and efficiencies; the value of our net deferred tax
assets; projections about depreciation expense and its impact on
income for book and tax return purposes; anticipated market
conditions; and any other statements that are not historical facts.
Forward-looking statements can be identified by the use of words
such as “expects”, “may”, “anticipates”, “aims”, “intends”,
“would”, “could”, “should”, “will”, “plans”, “believes”,
“estimates”, “targets”, “projects”, “forecasts”, “seeks” and
similar words and expressions. In addition, there can be no
assurance that future developments affecting us will be those that
we anticipate. Such statements involve risks and uncertainties,
including, but not limited to, those risks and uncertainties
relating to difficulties or delays in development, testing,
regulatory approval, production and marketing of our products
(including the First Defense® product line and
Re-Tain™), competition within our anticipated
product markets, customer acceptance of our new and existing
products, product performance, alignment between our manufacturing
resources and product demand, our reliance upon third parties for
financial support, products and services, changes in laws and
regulations, decision making and delays by regulatory authorities,
currency values and fluctuations and other risks detailed from time
to time in filings we make with the SEC, including our Quarterly
Reports on Form 10-Q, our Annual Reports on Form 10-K and our
Current Reports on Form 8-K. Such statements involve risks and
uncertainties and are based on our current expectations, but actual
results may differ materially due to various factors, including the
risk factors summarized above.
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