NasVax Ltd. (TASE: NSVX), a developer of innovative immunotherapeutics, has signed a memorandum of understanding with Chinese pharmaceutical company Acebright Holdings Ltd., which specializes in the production of cancer and inflammatory drugs, under which Acebright will invest $1 million in NasVax for a 10% stake in the company. Acebright also expressed willingness to participate in future offerings by NasVax.
NasVax will also transfer all its rights to the two main technologies that it is developing - Anti-CD3, an oral immunotherapy, and BBS, for the treatment of Alzheimer's - to two subsidiaries, each of which will focus on the development of one technology. Under the investment agreement to be signed, Acebright will be allocated 10% of each subsidiary, in addition to the allocation of the shares in NasVax.
NasVax will use the proceeds from the investment for clinical trials for the development of the two technologies that it is developing, working capital, and general purposes. The parties intend to sign a final agreement and close the deal by the end of July.
NasVax CEO Ari Aminetzah said, "The proposed deal with Acebright is an important strategic step for NasVax to secure financing and additional strategic partners. We are seeking to create additional opportunities to move forward products under development. We are now focusing on closing the investment agreement and production licensing agreement as soon as possible, and completing the spinning off of the activities to the subsidiaries. We see this spinoff as essential for moving the company forward on a new road, which will make it more attractive for additional strategic investors in the life sciences, and which will help create value for the current investors in the medium and long term."
NasVax's share price rose 34.3%, following the announcement, to NIS 0.09, giving a market cap of NIS 10 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2013
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