Brown’s Pharma Holdings plc has raised €13 million through a bond issue on the Malta Stock Exchange, which will be used to expand its retail pharmacy network and refinance existing debt.

Brown’s Pharma Holdings plc, through its Brown’s Pharma Limited subsidiary, operates a network of 21 pharmacies located across Malta.

The company, set up in 1998 by pharmacists Alexander Fenech and Robert Spiteri, is geared towards the commercialisation of pharmaceuticals and allied products such as health and beauty items, as well as services.

The company aims to grow its current pharmacy portfolio by increasing both footfall and sales through the introduction of new and innovative product and service offerings and the acquisition of more retail pharmacies.

To finance its growth, Browns issued 3.9 per cent Unsecured Callable Bonds 2027-2031, of a nominal value of €100.

The subscription period for the bonds opened on 16th June, and the issue was fully subscribed within a week and a half, closing on 25th June.

The €13 million raised will be utilised as follows:

(a) Circa €500,000 will be used for the acquisition of one additional pharmacy licence, with talks already at an advanced stage;

(b) Circa €1,400,000 for capital expenditure purposes in order to (i) renovate the pharmacies that have already been acquired and rebrand them under the ‘Brown’s’ brand; and (ii) invest in additional health services equipment such as laser hair removal machinery;

(c) Circa €4,000,000 for acquisitions of additional pharmacy licences, to refurbish and equip pharmacies and to invest in or fund other capital projects of the Group, provided that: (i) future acquisitions of additional pharmacy licences shall not exceed €3,000,000; and (ii) refurbishment of pharmacies shall not exceed €1,000,000;

(d) Circa €5,500,000 to refinance existing debt with BNF Bank plc, which loans consist of advances to finance the acquisition of new pharmacy licences and the refurbishing of the respective properties; and

(e) Circa €1,300,000 for general corporate funding purposes.

The bond issue expenses meanwhile amounted to €300,000.

Trading in the bonds on the Malta Stock Exchange commenced on Wednesday 7th July.

The board of directors thanked the investing public for the confidence expressed in the company, and for the overwhelming support shown towards its bond issue.