Cardio3 BioSciences (C3BS) has fully committed to a capital increase of 25M in two tranches, at 44 a share, representing an approximately 14% premium to the last 30 days average price. All new shares will be subscribed for by Medisun International Limited, a private holding company based in Hong Kong, intending to build a life science portfolio and with whom Cardio3 BioSciences will team up to create a joint venture aimed at conducting pivotal clinical programs in China.
Medisun International Limited is incorporated in Hong Kong and is a group company of Medisun Holdings Limited (Medisun). As a result of the total investment, Medisun will own approximately 8% of the Company's outstanding shares. The Company has undertaken to propose to its shareholders to appoint the chairman of Medisun International Limited, Danny Wong, as a Director of Cardio3 BioSciences. The nomination will be proposed at its next shareholders meeting.
Medisun has also committed to instruct a financial institution for the purchase of additional shares of Cardio3 BioSciences from existing shareholders for up to 25M over the next 8 months, at a price per share equivalent to the 10 days average preceding the offer(s).
This capital increase is aimed at providing funding for Cardio3 BioSciences to start the U.S. Food and Drug Administration (FDA) approved CHART-2 trial for C-Cure. In addition, the funds will support the Company's pipeline development and other general corporate purposes.
Dr Christian Homsy, CEO of Cardio3 BioSciences, commented: I am delighted to announce that we have successfully raised funding for CHART-2, the second phase III program for our most advanced therapy, C-Cure. It is another great step for our Company and, following the FDA's authorization to start CHART-2 which we received earlier this year, brings us closer to accessing the world's largest pharmaceutical market. We look forward to welcoming Medisun as an investor and Wong to our Board.
Danny Wong, Chairman of Medisun Holdings Limited commented: I am pleased to have this opportunity to be involved in this innovative technology developed by Cardio3 BioSciences. I truly believe that this state-of-the art product will revolutionize the treatment of heart failure which is a serious and urgent unmet medical need. The product is in the advanced stages of development and we are delighted to embrace the chance to progress the clinical development of C-Cure within the US and Asia. We anticipate making a strong...