Why Lifecore Biomedical Shares Are Skyrocketing Today
Portfolio Pulse from Shivani Kumaresan
Lifecore Biomedical (LFCR) has entered into agreements with Alcon (ALC) for the repayment of its existing credit agreement. Alcon has provided total commitments of $150 million, including a six-year senior secured term facility and a sale leaseback of certain HA fermentation equipment. The Amended and Restated Supply Agreement extends the term through December 31, 2033, and increases the amount of hyaluronic acid (HA) that Lifecore is expected to supply for use in Alcon's commercial products.
May 23, 2023 | 3:26 pm
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POSITIVE IMPACT
Lifecore Biomedical has secured $150 million in commitments from Alcon, including a six-year senior secured term facility and a sale leaseback of certain HA fermentation equipment. The Amended and Restated Supply Agreement extends the term through December 31, 2033.
The agreements with Alcon provide Lifecore Biomedical with financial stability and an extended supply agreement, which is expected to have a positive impact on the company's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Alcon has provided Lifecore Biomedical with total commitments of $150 million, including a six-year senior secured term facility and a sale leaseback of certain HA fermentation equipment. The Amended and Restated Supply Agreement extends the term through December 31, 2033.
While Alcon's commitments to Lifecore Biomedical provide financial stability for LFCR, the impact on Alcon's stock price is expected to be neutral in the short term, as the agreements are part of their ongoing business relationship.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 80