China Biotechnology Service (08037) announced that the company intends to acquire and acquire 67% equity of Shanghai Longyao Biotechnology at a maximum consideration of approximately RMB 227 million (the same unit below). Including paying 79.998 million yuan in cash; issuing consideration shares at a premium of 22% to the issue price of HK$2.00 per share; and issuing a total of additional award shares at HK$2 per share.
The company also announced that the company intends to issue 5.8 million new shares to Ye Shengqin at HK$2 per share for a total consideration of HK$11.6 million. The net proceeds are intended to be used for potential investment and general working capital of the Group.
The announcement shows that Shanghai Longyao Biotechnology is mainly engaged in tumor immune cell therapy, immune cell storage, health management services and other businesses in China.
The company stated that it believes that Shanghai Longyao Biotechnology's CAR-T cell immunotherapy technology has great potential in clinical cancer treatment. The acquisition will advance the company's plan to capture development opportunities in CAR-T cell therapy.