Pierre Laurin, President and CEO of ProMetic, said the investment from Shenzhen Hepalink will help the company’s expansion plans.
Prometic Life Sciences (TSX:PLI) today spiked to near the top of the TSX most actively traded list after announcing a deal with China-based Shenzhen Hepalink Pharmaceutical.
Prometic says it will license its protein technology for a research and development project. The company says the deal is worth $11-million, and will include an upfront fee of $2-million. Management says it expects the completion of the project will lead to a long-term agreement for the exclusive manufacturing arrangement.
The company also revealed that Shenzen Hepalink will take a 10% stake in Prometic though a private placement that consists of a $10-million equity investment at $20.4 cents per share, which is a 63% premium over yesterday’s closing price.