February 23 (SeeNews) - Bulgarian drug maker Tchaikapharma High Quality Medicines [BUL:7TH] said that its shareholders have approved its plan to borrow up to 14 million euro ($17.2 million) in order to finance the construction of a new production plant just outside Sofia.
The proposal was supported by all shareholders present at the meeting, representing 99.88% of the total voting rights, Tchaikapharma said in a stock exchange filing on Monday.
The loan, to be provided by local lender United Bulgarian Bank (UBB), will have an interest rate of between 2% and 3%. The eight-year loan agreement will have a three-year grace period.
Last year, Tchaikapharma said it intends to build its third manufacturing plant in the country, as it expects its existing facilities to reach their output limit in the next 1-2 years due to the increased demand and planned expansion in new markets.
The new plant will enable Tchaikapharma to increase its output to 950 million tablets per year from 450 million tablets at present. The company plans to complete the construction of the new plant by 2022 and achieve 93% workload of its facilities by 2026.
Tchaikapharma currently has production plants in Plovdiv and Varna and a portfolio of some 160 products.
($ = 0.8151 euro)