Avalon GloboCare (NASDAQ: AVCO) has signed a definitive agreement to purchases PRC limited liability firm Hebei Senlang Biotech in an all-stock transaction.
Avalon to acquire SenlangBio
Currently, SenlangBio is the most considerable cell therapy firm in North China regarding the depth and breadth of clinical development programs, bio-manufacturing scale, and pre-clinical studies. Its core tech platforms include allogeneic CAR Gamma Delta T-cells, armored tumor-infiltrating lymphocytes, and chimeric antigen receptor T-cells. In addition, Avalon plans to buy SenlangBio’s novel cellular therapy portfolio comprising various allogeneic and autologous candidates, including single-target therapies and cocktail combinations.
To complete the transaction, Avalon will offer 81 million of its common shares to buy SenlangBio. Avalon will have to seek shareholder approval before issuing the shares and potential equity financing approval as per the Nasdaq Stock Market rules at the upcoming annual shareholder meeting.
An investor to buy $30 million SenlangBio equity
Also, Avalon and SenlangBio entered deals with an institutional healthcare investor who committed to invest around $30 million in exchange for 15.6% of SenlangBio equity interest in a private placement financing. The deal will close in three $10 million installments at a fixed price once the transaction is finalized. The acquired SenlangBio stock bought in the Equity Financing will be exchangeable between six months and five years of the respective installments. Notably, there will be no other equity-linked instruments or warrants issued in connection to the acquisition.
Avalon CEO David Jin said, “Today’s transaction is an affirmation of our commitment to bringing life-saving cell and gene therapies to market. Harnessing advanced cell and gene engineering strategies, SenlangBio has developed unique core technology platforms for highly effective immune effector cell cancer therapies. Their autologous CAR-T candidates have already demonstrated significant positive responses in early clinical studies against relapsed and refractory B-cell and T-cell leukemias and lymphomas, with promising positive response rates and were well tolerated by patients.”