‎“Jamjoom Pharma” increases capital of a subsidiary by 60 ‎million riyals to acquire a pharmaceutical factory in Algeria

Jamjoom Pharmaceutical Factory Company announced an increase in the capital of the joint venture, Jamjoom Algeria Pharmaceutical Joint Stock Company (in which the company owns 49% of the capital). As the purpose of raising the capital is to finance part of the value of the acquisition of an existing pharmaceutical factory in Algeria and to cover operating costs.

The Jamjoom Algeria Pharmaceutical Joint Stock Company was established between the Jamjoom Pharmaceutical Factory Company and, the Algerian partner, Dawaa Investment S.A. (now wholly owned by A.A. Vital Care Company for Production, Distribution and Logistics) for the purpose of operating and acquiring a pharmaceutical factory in the State of Algeria.

The company stated that the capital of Jamjoom Allegria Pharmaceuticals, before the increase, amounted to 158 million Algerian dinars, divided into 158,000 shares, of which it owns 77,415 shares, equivalent to 49% of the company’s capital.

After the increase, the capital of Jamjoom Algeria for the drug will be at 2.3 billion Algerian dinars through the issuance of 2.1 million new shares, so that the company now owns 1.15 billion Algerian dinars, equivalent to about 49% of the total capital.

The company’s capital has been increased by about 16 million dollars, equivalent to 60 million riyals, for the purpose of:

Partial financing for the acquisition of a pharmaceutical factory in the capital, Algiers, in the State of Algeria, from a multinational company with a proven track record in the pharmaceutical industry, as the initial value of the factory is equivalent to 13 million US dollars (52.3 million riyals).

Financing factory operating expenses reached a value of $2 million (7.4 million riyals).

According to the statement published on “Tadawul”, the company’s investment share in the deal amounted to 8 million dollars (30 million riyals), and the parties to the deal agreed to consider the date of July 26 as the date of closing the deal, so the Board of Directors recommended approval on the 2nd. July to pay the aforementioned amount to fulfill the company’s share.‎

With regard to the remaining installment of the acquisition value (equivalent to approximately $9.5 million, the amount may be subject to minor adjustments according to the current understandings), financing it through the joint venture is being discussed through bank financing in Algeria that is compatible with Sharia during the third quarter of the year 2023.

Note that the factory subject to acquisition contains modern manufacturing technologies and equipment in the field of drug manufacturing and has the capabilities to produce integrated formulations for oral solid preparations (tablets, capsules, powders), and commercial work will begin during the third quarter of this year.

The company expects that the financial impact of the factory will begin to appear, starting from the third quarter of the year 2023

It should also be noted that the members of the company’s board of directors, Mahmoud Youssef Jamjoom, Muhammad Yousef Jamjoom and Ahmed Yousef Jamjoom, represent the company as members of the board of directors of the Jamjoom Algeria Pharmaceutical Joint Stock Company.