FREMONT, CA, July 26, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – ABVC BioPharma, Inc. (NASDAQ: ABVC) ("Company"), a clinical-stage biopharmaceutical company developing therapeutic solutions in Oncology/Hematology, Neurology, and Ophthalmology, announced today that it has signed a term sheet to advance a partnership with Zhonghui United Technology (Zhonghui) Group Co., Ltd. and its affiliated enterprises. The partnership contemplates a planned acquisition of real estate assets via an equity transfer, estimated at $7.4 million, all to advance the development of a large-scale health and wellness base in Chengdu, China.
The planned partnership aims to establish an integrated platform to facilitate collaborations between researchers and industry leaders. ABVC intends to transfer common shares to Zhonghui at $20 per share in consideration for a twenty percent ownership of Zhonghui's property near Chengdu, China, estimated at $37 million by a third-party valuation company and a piece of land Zhonghui currently owns in that same area.
"We are pleased to have executed the term sheet with Zhonghui, a wholly owned corporation established in 2020 with total assets of $4.4 billion, annual revenue of $4.2 billion, and a net profit of $757 million," said Uttam Patil, Ph.D. CEO of ABVC. "With this initiative, we will work towards developing a large health and wellness base to establish a comprehensive facility that provides a wide range of services. The integrated platform will help facilitate collaboration between industry, academia, and research. We strive for revitalization by promoting innovation, knowledge exchange, and sustainable development in rural areas around Chengdu. Strong partnerships with leading institutions and our expertise in Oncology/Hematology, Neurology, and Ophthalmology enable us to expand globally."
Completing definitive agreements with Zhonghui and acquiring the real estate assets is subject to due diligence, negotiation of definitive agreements between the parties, and relevant regulatory approvals.
About ABVC BioPharma
ABVC BioPharma is a clinical-stage biopharmaceutical company with an active pipeline of six drugs and one medical device (ABV-1701/Vitargus®) under development. For its drug products, the Company utilizes in-licensed technology from its network of world-renowned research institutions to conduct proof-of-concept trials through Phase II of clinical development. The Company's network of research institutions includes Stanford University, the University of California at San Francisco, and Cedars-Sinai Medical Center. For Vitargus®, the Company intends to conduct global clinical trials through Phase III.
Forward-Looking Statements
This press release contains "forward-looking statements." The words may precede such statements "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential," or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. None of the outcomes expressed herein are guaranteed. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our product candidates on a commercial scale on our own, or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval to proceed to the next level of the clinical trials or to market our product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Contact:
Tom Masterson
Email: tmasterson@allelecomms.com
