Business
Lifecore Biomedical Reports Third Quarter Fiscal Year 2023 Results
Going concern qualification is removed as a result of the $150 million new financing transaction announced last week CHASKA, Minn., June 01, 2023 (GLOBE
About this update from Lifecore Biomedical, Inc.
[{"type":"text","content":"Going concern qualification is removed as a result of the $150 million new financing transaction announced last week\nCHASKA, Minn., June 01, 2023 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (“Lifecore” or the “Company”), a fully integrated contract development and manufacturing organization (“CDMO”), reported results for the fiscal 2023 third quarter ended February 26, 2023. CEO COMMENTS: James G. Hall, President and Chief Executive Officer of Lifecore, commented, \"We took a noteworthy step forward last week with the execution of an enhanced Supply Agreement with a significant, long-term customer, Alcon, as well as completing a comprehensive restructuring of our debt arrangements led by Alcon. These transactions allow the Company to clear the existing Going Concern qualification and create a more stable and sustainable business model. In combination with the sale of our remaining Curation Foods segment business in early April, Lifecore is beginning a new chapter as a stand-alone CDMO. Going forward, we remain focused on continuing to execute on our business plan and evaluate potential strategic alternatives so as to determine the best path forward to maximize value for our stockholders.\" Mr. Hall continued, \"Our fiscal third quarter results came in as expected and reflect a continuation of the timing differences we experienced in the second quarter resulting from delayed commercialization of certain customers’ projects, onboarding new development projects that are in the earlier, lower revenue stages of development and timing of fermentation revenues. Despite this temporary deceleration, we have made significant advancements in our commercial development pipeline, including the expanded supply agreement for HA fermentation with Alcon, as well as further advancements in our development pipeline, in which we are seeing increased customer interest in partnering with Lifecore. The product of these advancements will be visible in fiscal fourth quarter performance with a sequential step up in Lifecore's segment adjusted EBITDA that approximates a doubling of fiscal third quarter results.\" LIFECORE FISCAL THIRD QUARTER 2023 FINANCIAL HIGHLIGHTS:As previously reported, on December 13, 2021, the Company closed on the sale of its Curation Foods' fresh packaged salads and vegetables business (the “Eat Smart Disposition”), and on Feb...