Kanglong Chemical (03759) issued an announcement regarding the sale of the Group's interest in PROTEOLOGIX, INC.
Zhitong Finance App News, Kanglong Chemical (03759) issued an announcement regarding the sale of the Group's interest in PROTEOLOGIX, INC. Equity invested by (Proteologix). Pharmaron (Hong Kong) Investments Limited, a wholly-owned subsidiary of the company, holds a minority shareholder interest of approximately 10.21% of Proteologix's issued share capital. This interest is recorded in the company's consolidated financial statements as an equity investment that includes profit and loss at fair value.
Proteologix has notified the company that Proteologix has reached an agreement with Johnson & Johnson (the buyer) to acquire Proteologix (merger) through a merger. On May 15, 2024, Johnson & Johnson, its wholly-owned subsidiary, Proteologix, and representatives of its securities holders entered into a localization plan and merger agreement, according to which the parties agreed to merge Proteologix with one of the buyer's wholly-owned subsidiaries.
After the merger, Proteologix's current shareholders will receive a total cost of up to $1 billion, including milestone payments of approximately $150 million after reaching certain milestones.
The Group is expected to receive an initial payment of approximately $86.821 million, as well as a milestone payment of approximately $15.321 million after reaching certain milestones under the merger agreement. The Group plans to use the consolidated proceeds to supplement the Group's working capital to support the growth and development of the Group's main business as a full-process, integrated pharmaceutical R&D service platform.