Lifecore Biomedical Further Strengthens Financial Position Through Sale of Excess Capital Equipment for $17 Million

Core Viewpoint - Lifecore Biomedical is strategically positioned for mid-term and long-term growth, supported by its current capacity to generate up to $300 million in annual revenue through the recent installation of a high-speed 5-head filler and the sale of excess equipment [1][2]. Group 1: Financial Transactions - Lifecore has entered into a sales agreement for a high-speed, multi-purpose 10-head isolator filler, receiving an aggregate purchase price of $17 million, with $7 million received at closing and the remainder to be paid in three tranches over the next 18 months [1][2]. - The sale of the 10-head filler is viewed as a compelling opportunity to monetize unused equipment and enhance the company's financial position [2]. Group 2: Operational Capacity - The installation of the new high-speed, multi-purpose 5-head isolator filler has doubled Lifecore's available capacity, allowing the company to better serve existing and future customers [2]. - The 5-head filler is GMP-ready, and the company is currently engaging in discussions with customers to leverage its speed and aseptic isolation capabilities [2]. Group 3: Company Overview - Lifecore Biomedical is a fully integrated contract development and manufacturing organization (CDMO) specializing in the development, fill, and finish of sterile injectable pharmaceutical products, including complex formulations [3]. - The company has over 40 years of expertise in manufacturing premium, injectable-grade hyaluronic acid and partners with global and emerging biopharmaceutical and biotechnology companies [3].