KDA Group -- Update
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Thetford Mines, Quebec – TheNewswire - September 22, 2021 – KDA Group Inc. (TSXV:KDA) (“KDA” or the “Corporation”) is pleased to announce an update on many accomplishments realised during the past few months.
“The Corporation is proud of all these accomplishments that have materialized over summertime and many other projects are in the pipeline for the fall period. Unfortunately, the timing of these realisations occurred while a lot of people were away on vacation, therefore we are doing a quick recap for everyone’s knowledge. The Corporation and its wholly owned subsidiary, Groupe Technologique KDA Inc., will focus on the development of their technological platforms and projects in Canada, United States and Europe for the coming months and quarters. Finally, a very exciting time is in front of the Corporation and the management is ready to act and move forward in the realizations of new projects and with such, achieving an increase in shareholders’ value. We will keep you posted of all project developments,” said Marc Lemieux, Chief Executive Officer of KDA.
As previously disclosed by press releases, the Corporation announced the following realizations:
NEW BANK FINANCING WITH PRIVATE DEBT PARTNERS
On August 6, 2021, the Corporation announced the closing of a new term debt financing of up to CAD $7.0 million with a December 30, 2022, maturity date (the “Debt Financing”) with Private Debt Partners.
This Debt Financing allowed the Corporation to exit National Bank of Canada’s special loans department and improved its current and future financial position. Furthermore, the financing for the development of the technological projects was secured and the management is now able to concentrate on the commercialization, marketing and success of each of them.
The use of proceeds was to refinance existing term debt and operating facility held by National Bank of Canada, to fund Groupe Technologique KDA Inc. and for general working capital purposes.
DEBT RESTRUCTURING WITH PERSISTENCE CAPITAL PARTNERS
On July 30, 2021, the Corporation announced the restructuring of its total debt owed to Persistence Capital Partners II, L.P. and Persistence Capital Partners II (International), L.P., (collectively “PCP”) (the “Debt Restructuring”).
This Debt Restructuring allowed the Corporation to improve its current and future financial position.
The Corporation and PCP signed a Prepayment Agreement and related documents allowing the Corporation to (i) extend the maturity date of the notes and the Preferred Shares issued to PCP until December 31, 2022; (ii) reduce the interest and dividend rates and (iii) potentially reduce the amount payable to PCP to a minimum payment amount of $8,000,000.
Under the Debt Restructuring, the Corporation issued new Series B-1 and Series B-2 Preferred Shares to PCP as well as interest-bearing promissory notes and the Series A Preferred Shares were cancelled.
SALE OF REMAINDER INTEREST IN PHARMAPAR
The Corporation announced on July 29, 2021 that Strides Pharma Canada Inc. (“Strides”) exercised its option on June 30, 2021 to acquire the 20% interest owned by the Corporation in Pharmapar Inc. (“Pharmapar”). In 2019, Strides acquired form the Corporation 80% of the issued and outstanding shares of Pharmapar and under a shareholders agreement signed between the parties in 2019 (the “Shareholders Agreement”), Strides had the option to acquire the remaining 20% interest in Pharmapar from the Corporation two (2) years after the transaction. The purchase price paid by Strides for this 20% interest in Pharmapar was $1, and has been calculated according to a formula stipulated in the Shareholders Agreement, based on the EBITDA of Pharmapar.
As a result, the Corporation no longer has any ownership or interest in Pharmapar and this has allowed the Corporation to focus on its core business.
ABOUT KDA GROUP
KDA Group is a leading technological innovations and specialized solutions provider in the pharmaceutical market. Today, it is a respected name for quality and expertise among the different stakeholders in the pharmaceutical and medical sector. Its management team is guided by a vision of continuing to lead the way in Quebec while extending operations across Canada and internationally. Additional information on the Corporation is available at www.kdagroup.ca and on SEDAR at www.sedar.com.
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CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release from KDA Group contains forward-looking statements. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target, and other similar expressions, or future or conditional verbs such as aim, anticipate, believe, predict, could, expect, intend, may, plan, seek, should, strive, and will. By their nature, forward-looking statements require us to make estimates and assumptions and express opinions based on current conditions and anticipated developments, as well as other factors that Management may deem appropriate under the circumstances. There is inherent uncertainty and significant risk in these estimates, assumptions, and opinions, particularly of a commercial, economic, and competitive nature, and they are therefore subject to change. KDA Group cannot guarantee that these estimates, assumptions, and opinions will prove to be accurate.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
INFORMATION
Marc Lemieux
Chief Executive Officer
514 622-7370