ADL BioPharma is carrying out a new capital increase of 12 million euros in order to reinforce its equity position and provide the financial strength to execute its Strategic Growth Plan. This increase has been signed 100% by its sole shareholder, Kartesia. In addition, ADL BioPharma and Kartesia have signed a participating loan (PPL) of 4 million euros convertible into equity, which will be used to finance process improvement investments and to expand the production capacity for new customers.
The capital increase and the new PPL will enable the León-based company to undertake the investments needed to achieve the ambitious objectives established in the 2021-2025 Strategic Plan approved by ADL BioPharma Board last May. Part of the funds will be used to upgrade existing fermentation facilities, but the most significant amount will be used to expand capacity, systems and machinery in downstream area for new customers.
This agreement reflects, once again, Kartesia’s strong support and confidence in the company’s team and ADL BioPharma’s potential for profitable growth.
Jaime Prieto, managing partner of Kartesia, stated that the agreement “provides ADL with the financial support required to execute the first phase of the Strategic Plan drawn up by the new team, which is based on highly professional management and increasingly optimistic business prospects”. He also stressed that “Kartesia has proven to be an investor that is committed to ADL in a decisive, forceful way that is sustained over time”.
In turn, Ignacio Urbelz, CEO of the León-based company, said “I would like to highlight and thank the great work being done by ADL’s staff members during this challenging times. I am confident, this is going to allow us to return to profitability within this same year. There is a tremendous challenge ahead of us, that I am sure we are going to overcome with the support of shareholders and employees”.
About ADL BioPharma:
ADL BioPharma is a Spanish company specialised in third party manufacturing and development (CDMO) with two lines of business: precision fermentation and purification and synthesis of sterile oral antibiotics. The company has the know-how of more than 50 years of operations, with one of the largest fermentation capacities in Europe and a state-of-the-art pilot plant to develop and scale-up new molecules. Headquartered in León and employing around 290 people, ADL is in an optimal position to benefit from the expected growth in both end markets.