Brisbane-based respiratory and autoimmune disease company Invion (ASX: IVX) has announced a a strategic alliance with Hong Kong-based The Cho Group.
The Cho Group funds and has successfully commercialised a number of innovative technologies.
According to Invion, the strategic alliance represents an opportunity to expand its business and develop its asset pipeline through the identification and in-licencing of new advanced clinical opportunities.
Under the alliance, The Cho Group will make an equity investment in Invion, in the form of a private placement of 218,894,024 fully paid ordinary shares in the company, representing 17.69 per cent of its existing issued capital, for a post-issue holding by The Cho Group of 15.03 per cent. Shares will be issued at a price of $0.003, being the volume weighted average price for Invion shares traded on the ASX for the 15 days up to and including the day before execution of the agreement, for a total investment of $656,682.
According to the company, placement proceeds will be received in two tranches: $100,000 will be received immediately with the balance of $556,682 received by 15 June 2017.
Shares will be issued in line with the receipt of placement funds.
Invion said it plans to use the proceeds for working capital as it continues to market the sale or out-licence of its current respiratory assets and seeks, in collaboration with The Cho Group, to identify new assets to bring into its pipeline.
Following completion of the placement, the Board of Invion will be restructured to include two representatives of The Cho Group.
Dr Greg Collier, Interim Executive Chair, said: “The Board of Invion is very pleased to welcome The Cho Group as a new shareholder and strategic alliance partner. The alliance will see us consolidate the Company’s financial position and leverage The Cho Group’s substantial networks in the East Asian region to identify and progress new biotechnology opportunities. The Board sees access to the Asian capital and medical markets as significant opportunities for growth and value creation.
“The Board remains committed to the sale or out-licence of the Company’s existing assets, and continues to actively pursue partners, including pharmaceutical companies, health and other funds, and like-minded biotechnology groups.
“We look forward to working with The Cho Group to identify potential new targets to expand Invion’s business through pipeline enhancement.”