Public disclosure of inside information according to article 17 MAR
Biofrontera AG: Payment Difficulties of Biofrontera Inc. and Recall of Outlook
Leverkusen (pta042/27.05.2025/19:48 UTC+2)
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| Leverkusen, May 27th 2025 |
Biofrontera AG and its subsidiaries Biofrontera Pharma GmbH and Biofrontera Bioscience GmbH (together "Biofrontera Germany") have entered into an agreement with Biofrontera Inc. about how to settle payment obligations by Biofrontera Inc. in an amount of approx. two million Euros in total, whereas one million Euros was due for payment and another one million Euros had become due for payment on 28 May 2025. Now, Biofrontera Inc. has paid 350.000 Euros on Tuesday, May 27th and another 1.7 million Euros shall be paid no later than 18th June 2025. Although this has been agreed, it seems unclear, if, when and to what extent Biofrontera Inc. can fulfill its payment obligations in relation to Biofrontera Germany. Negotiations in the future can also include negotiations about the amendment of the existing license agreement with Biofrontera Inc. However, it is unclear whether amendments of the license agreement are acceptable for Biofrontera Germany. In light of this, the forecast communicated on 14th April 2025 in relation to EBITDA, revenues and average revenue growth for the fiscal year 2025 can no longer be maintained. Biofrontera Inc. published in its 1st quarter report 2025 substantial doubts about sufficient capital resources for Biofrontera Inc's ability to continue as a going concern for at least twelve months. Biofrontera Inc. stated that the future viability of the company is dependent on its ability to execute its growth plan and raise additional capital or find alternative methods of financing to fund its operations. There can be no guarantee that Biofrontera Inc. will be successful in raising additional capital or finding alternative methods of financing, and if Biofrontera Inc. is not successful in these endeavors, it would likely have a material adverse effect on Biofrontera Inc.'s business, results of operations and financial condition. This in turn can result in a total loss of Biofrontera Germany's claims against Biofrontera Inc. |
| At this stage, the management board cannot estimate as to what extent and whether a delay of payments can occur and what consequences this may have in relation to Biofrontera Inc and in relation to the relationship between Biofrontera Germany and Biofrontera Inc. If Biofrontera Inc. fails to pay the amounts due to Biofrontera AG and its subsidiaries, or if there is a substantial delay in such payment, it could have a material adverse effect on Biofrontera AG's business, results of operations and financial condition. |
| Given the current circumstances, the management team lacks sufficient information to provide an updated outlook for 2025. Once Biofrontera AG's Management has greater visibility into the financial outlook of Biofrontera Inc. and its ability to fulfill its contractual obligations, a revised outlook will be issued to reflect the updated risk profile and operational scenario." |
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| Emitter: |
Biofrontera AG Hemmelrather Weg 201 51377 Leverkusen Germany |
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| Contact Person: | Investor Relations | |
| Phone: | +49 (0) 214 87 63 20 | |
| E-Mail: | ir@biofrontera.com | |
| Website: | www.biofrontera.com | |
| ISIN(s): | DE000A4BGGM7 (Share) | |
| Stock Exchange(s): | Regulated Market in Dusseldorf, Frankfurt; Free Market in Berlin, Munich, Stuttgart, Tradegate |