ImmuCell Enters into Lease Agreement for a Facility to Expand First Defense® Production Capacity
September 17 2019 - 08:00AM
ImmuCell Corporation (Nasdaq: ICCC)
(“ImmuCell” or the “Company”) – a growing animal health company
that develops, manufactures and markets scientifically-proven and
practical products that improve the health and productivity of
dairy and beef cattle – today announced that it has entered
into a lease covering approximately 14,300 square feet of office
and warehouse space effective approximately November 1, 2019.
The space will be utilized to enable the Company’s plan to
increase the production capacity of the First
Defense® product line. The Company expects to have
use of this new space by mid-2020 after building out the needed
production rooms. The Company had considered a “build to
suit” option on nearby land. This leasing option saves time
and building construction costs, allowing the Company to move
forward with its expansion plans more effectively and timely.
“Accessing this property is part of our $3 million investment in
First Defense® to increase the sales value of our
annual production capacity from approximately $18 million to
approximately $27 million,” commented Michael F. Brigham, President
and CEO. “By moving the final product formulation, filling
and assembly for First Defense® to the leased
building, we free up ample space in our current facility to
increase liquid processing capacity by 100% and freeze drying
capacity by 50%.”
The property is located nearby to the Company’s facility at 56
Evergreen Drive in Portland, Maine. The lease term is ten
years with a right to renew for a second ten-year term and a right
of first offer to purchase. The total lease liability over
the initial ten-year term (including inflationary adjustments)
aggregates approximately $1.3 million before real estate and
personal property taxes, utilities, insurance, maintenance and
related building and operating expenses.
Brigham concluded, “Our new partner, Dan Catlin of Commercial
Properties representing TVP, LLC, has been great to work
with. He is bringing the needed resources together very
timely to help make our vision a reality.”
About ImmuCell: ImmuCell Corporation's
(Nasdaq: ICCC) purpose is to create
scientifically-proven and practical products that improve the
health and productivity of dairy and beef cattle. ImmuCell
markets First Defense®, providing
Immediate Immunity™ to newborn dairy and beef
livestock, and is in the late stages of developing
Re-Tain™, a novel treatment for mastitis, the most
significant cause of economic loss to the dairy industry. Press
releases and other information about the Company are available at:
http://www.immucell.com.
Cautionary Note Regarding Forward-Looking Statements
(Safe Harbor Statement):
This Press Release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such statements
include, but are not limited to, any statements relating to: our
plans and strategies for our business; projections of future
financial performance; the timing and outcome of pending or
anticipated applications for regulatory approvals; factors that may
affect the dairy and beef industries and future demand for our
products; the scope and timing of ongoing and future product
development work and commercialization of our products; future
costs of product development efforts; the estimated prevalence rate
of subclinical mastitis; the expected efficacy of new products;
estimates about the market size for our products; future market
share of and revenue generated by current products and products
still in development; our ability to increase production output and
reduce costs of goods sold associated with our new product,
Tri-Shield First Defense®; the
future adequacy of our own manufacturing facilities or those of
third parties with which we have contractual relationships to meet
demand for our products on a timely basis; the anticipated costs of
(or time to complete) planned expansions of our manufacturing
facilities and the adequacy of our funds available for these
projects; the continuing availability to us on reasonable terms of
third-party providers of critical products or services; the
robustness of our manufacturing processes and related technical
issues; estimates about our production capacity; the future
adequacy of our working capital and the availability and cost of
third-party financing; future regulatory requirements relating to
our products; future expense ratios and margins; future compliance
with bank debt covenants; future cost of our variable interest rate
exposure on most of our bank debt; costs associated with sustaining
compliance with current Good Manufacturing Practice (cGMP)
regulations in our current operations and attaining such compliance
for the facility to produce the Nisin Drug Substance;
implementation of international trade tariffs that could reduce the
export of dairy products, which could in turn weaken the price
received by our customers for their products; our effectiveness in
competing against competitors within both our existing and our
anticipated product markets; the cost-effectiveness of additional
sales and marketing expenditures and resources; anticipated changes
in our manufacturing capabilities and efficiencies; the value of
our net deferred tax assets; projections about depreciation expense
and its impact on income for book and tax return purposes;
anticipated competitive and market conditions; and any other
statements that are not historical facts. Forward-looking
statements can be identified by the use of words such as “expects”,
“may”, “anticipates”, “aims”, “intends”, “would”, “could”,
“should”, “will”, “plans”, “believes”, “estimates”, “targets”,
“projects”, “forecasts”, “seeks” and similar words and expressions.
In addition, there can be no assurance that future developments
affecting us will be those that we anticipate. Such statements
involve risks and uncertainties, including, but not limited to,
those risks and uncertainties relating to difficulties or delays in
development, testing, regulatory approval, production and marketing
of our products (including the First Defense®
product line and Re-Tain™), competition within our
anticipated product markets, customer acceptance of our new and
existing products, product performance, alignment between our
manufacturing resources and product demand, our reliance upon third
parties for financial support, products and services, changes in
laws and regulations, decision making by regulatory authorities,
currency values and fluctuations and other risks detailed from time
to time in filings we make with the SEC, including our Quarterly
Reports on Form 10-Q, our Annual Reports on Form 10-K and our
Current Reports on Form 8-K. Such statements involve risks and
uncertainties and are based on our current expectations, but actual
results may differ materially due to various factors, including the
risk factors summarized above.
Contacts: |
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Michael F. Brigham, President and CEO |
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ImmuCell Corporation |
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(207) 878-2770 |
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Joe Diaz, Robert Blum and Joe Dorame |
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Lytham Partners, LLC |
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(602) 889-9700 |
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iccc@lythampartners.com |
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