The Board of Directors at their meeting held on 6th August 2018 has approved an investment in a step-down subsidiary at El Salvador up to a limit of USD 7 Million in Ordinary Shares and/ or Debt by its Wholly Owned Subsidiary (i.e) Caplin Point Far East Limited.

It is informed that the company is currently selling its Generic and Branded Generic products through channel partners in most countries in Latin America. Caplin as a brand has been established well in the region for over 15 years and is well received by the Consumers. It would be useful to note that all of the Product Licenses/Registrations/IPs are held in the Company name, with an exclusive license currently handed to the channel partner(s).

As a first step towards this endeavour, in order to acquire the business which inter-aha includes inventory of the channel partner at El Salvador, it has now been decided to invest in Ordinary Capital and/ or Debt of FAEMA AMEmCA S.A de CV, a Company incorporated in El Salvador, through Wholly Owned Subsidiary Caplin Point Far East Limited, Hong Kong, such that the entire shareholding is held by Caplin Point Far East Limited. The name of the company will be changed to Caplin El Salvador S.A.de C.V upon making the investment, subject to regulatory approvals at El Salvador.

The process is Likely to be completed within three months, during which time it has also been agreed to avail the transition services from the channel partner so that the business is not hampered during the switch-over.