Jamjoom Pharma to raise capital of its Algeria joint venture

Logo of Jamjoom Pharma

Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) announced an increase in the capital of Jamjoom Algeria Lil Dawa SPA, its 49%-owned joint venture in Algeria.

In a statement on Tadawul, Jamjoom stated that the capital raise will finance part of the acquisition of an existing pharmaceutical factory in Algeria and cover operating costs.

Jamjoom Pharma will partially utilize the capital hike in financing the acquisition of a pharma factory from a multinational pharmaceutical firm in Algeria, with an initial payment of $13.95 million (SAR 52.31 million).

In addition, the Saudi company will finance the factory’s operating expenses of $2.05 million (SAR 7.50 million).

The company stated that its investment share in the above-mentioned deal stands at $8.03 million (SAR 30.09 million).

The two parties agreed July 26, 2023, as the closing date for the transaction, with the company's board of directors recommending July 2 as the payment date to fulfill the company's obligation.

The remaining installment of the acquisition value of nearly $9.5 million is planned to be funded through the joint venture via Shariah-compliant financing in Algeria during Q3 2023.

The factory has a modern pharmaceutical manufacturing facility, producing integrated oral solid dosage formulations (tablets, capsules, powders). It will commence commercial operations in Q3 2023.

Jamjoom Pharma’s board of directors - Mahmoud Yousuf Jamjoom, Mohammad Yousuf Jamjoom and Ahmed Yousuf Jamjoom - represent the company as board members of Jamjoom Algeria Lil Dawa.

In 2021, Jamjoom Pharma entered into an agreement with Algeria-based DAWA Investment SARL to establish Jamjoom Algeria Lil Dawa SPA.