Procaps Issues Shareholder Letter Update

Core Insights - Procaps Group is undergoing a financial restructuring and strategic plan to enhance its operational efficiency and financial health [1][6] Debt Management - The company has signed consolidated forbearance agreements covering approximately $209 million in debt, allowing it to pause payments and focus on long-term strategies [2] - A $5 million investment from controlling shareholders via a subordinated promissory note has been secured to support immediate working capital needs, highlighting the urgency of the restructuring plan [3] Operational Improvements - Procaps is conducting an internal investigation and working with legal and accounting advisors to ensure the accuracy of financial reporting [4] - The company is collaborating with financial advisors, including FTI Consulting, Inc., to develop a comprehensive long-term debt restructuring plan [5] Future Outlook - The company aims to improve operational efficiency, optimize cash flow, and secure financial flexibility to support long-term growth objectives [6]