Addentax Group Corp. is in advanced discussions to acquire a partial stake in Shanghai Bao Pharmaceutical Company from its CEO, Hong Zhida. Bao Pharma has made progress in its key pipelines, securing clinical trial approvals for its products. Addentax aims to diversify its business and maximize shareholder interests with this venture.
Addentax Group Corp. (“Addentax” or the “Company”) (Nasdaq: ATXG), an integrated service provider focusing on garment manufacturing, logistics services, property management and subleasing, and epidemic prevention supplies, today announced that it is in advanced discussion with its Company’s Chairman and Chief Executive Officer, Mr. Hong Zhida, to acquire Mr Hong’s partial stake in Shanghai Bao Pharmaceutical Company Limited (“Bao Pharma”), via Shenzhen Grandway Capital Management Co., Ltd. (“Grandway Capital). Grandway Capital will act as a fund manager.
As of May 2023, Bao Pharma possesses 74 patents and is consistently making progresses on its key pipelines. Its Recombinant IdeS Protease has secured Clinical Trial approvals from the United State FDA, China National Medical Products Administration and New Zealand Medicines and Medical Devices Safety Authority in 2022. Other key pipeline products, including Recombinant Human Hyaluronidase and recombinant human Follicle-Stimulating Hormone, have respectively completed Phase III clinical trials.
Mr Hong invested in Bao Pharma, via Grandway Capital in 2020. On August 25, 2022, Bao Pharma received USD100 million in a round of funding led by Shenzhen Oriental Fortune Capital Co., Ltd. The transaction included participation from Finnova Capital, Haitong Innovation Private Fund Management Co., Ltd., Shanghai Sun Rock Capital Management Co., Ltd., Center Laboratories, Inc.
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Mr. Zhida Hong, the Chairman and Chief Executive Officer of Addentax, stated, “Our group is now aggressively diversifying its business to other cutting edge areas, including biotech and electric vehicles etc. In addition to our traditional garment and logistics businesses, I believe that our new venture will soon generate extra revenue to this group and maximize the shareholders’ interests.”
Source: BioSpace
