Prometic Life Sciences heats up after China deal

 
 
Pierre Laurin, President and CEO of ProMetic said the investment from Shenzhen Hepalink will help the company's expansion plans.

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.


 

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