Indies Pharma Jamaica Limited has advised it negotiated with Sagicor Investments Jamaica Limited for a loan of J$1.12 billion by way of private place bond in the amount.
The company disclosed the funds are intended to repay associate company Bioporist Holdings Inc. the amount of J$398.75 million which was used to purchase three acres of land in Montego Bay, St James.
The lot is registered in the name of Indies Pharma Business Park Limited.
Proceeds will also be used to develop and get approval for at least two Abbreviated New Drug applications (ANDA) from the US Food and Drug Administration (USDA), the company said in a Jamaica Stock Exchange notice.
Indies advised that the transaction is still pending, and the company will provide further disclosure to the market in due course.
For the six months ended April 30, 2020, current liabilities Indies Pharma increased by 562 per cent (J$467.26 million), predominantly due to a short-term loan borrowed to purchase land which will be used for the construction of Indies Pharma Ja Ltd Corporate Office and warehousing.
Net profit for climbed 28 per cent to J$108.84 million from $84.63 million, a J$24.21 million or 28.60 per cent over the six months ended April 30, 2020, compared with the previous year.
Overall revenues for the six-month period ended April were J$400.96 million, up 11 per cent, or J$39.66 million, over the corresponding period in 2019.
For the April quarter, revenue saw an uptick of $207.24 million compared to $193.12 million in the similar period in 2019.
The pharmaceutical company, which started in 2003, develops and markets prescription and over-the-counter drugs and is part of the Bioprist Group that does property development and business process outsourcing.
Net profit for the period, was almost double year over year, with $68.53 million earned compared to $32.57 million in 2019.