Case Study

Grant Thornton supports pharma company J. Molner’s IPO

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In November 2022, the Nasdaq Tallinn exchange’s alternative market First North started trading of the shares of the only Baltic pharmaceutical company J. Molner. Grant Thornton Baltic auditors had an important role in laying the groundwork for J. Molner’s market debut.

Grant Thornton Baltic audit team performed a valuation of the J. Molner Company OÜ’s non-monetary contribution and audited financial statements for 2021 and six months of 2022. Our team included Grant Thornton Baltic’s partner and sworn auditor Tarmo Rahkama, the junior audit manager Marliis Sööt and senior audit consultant Pavel Kolk.

Rahkama said that, as always, working with a company going public involved a very significant time factor, which imposed high requirements on organization of the work and professionalism of the team. “Our people have refined their mutual cooperation to a very consummate level, so even though the schedule was tight, we got the work done successfully. Our team also quickly developed smooth cooperation with the J. Molner people, which was definitely one of the factors that helped us manage everything in time and with the required attention to detail,” said Rahkama.

J. Molner intends to use the proceeds of the IPO to recruit new employees and for increasing the capability of the company’s laboratory in Tallinn’s Tehnopol science park. “The company will use the revenue used to speed up the market launch of its new products, including the first J. Molner branded products in 2023,” said member of the J. Molner management board Jason Grenfell-Gardner in the stock market press release.

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The J. Molner Company’s Estonia-based lab was established in 2015 as a part of the global pharmaceutical company to support the US-based parent’s research and development. The company has been an independent business since autumn 2020 and is focusing on injectable and dermatological drugs on the American and Canadian market.

Nasdaq First North seeks to improve access by small and medium-sized companies to growth capital. First North provides a less stringent path for a company to become publicly tradable as the requirements are less rigorous than on the regulated market.