ABVC BioPharma Strengthens Investment in AiBtl BioPharma with Equity Conversion and Up to $20 Million Commitment
ABVC BioPharma's strategic equity conversion and investment in AiBtl BioPharma underscores its commitment to advancing CNS drug candidates and leveraging a capital-light strategy for future growth.
ABVC BioPharma, Inc. has converted a $100,000 convertible note into 10,000 shares of AiBtl BioPharma Inc. common stock at $10 per share, based on an independent valuation, and plans to invest up to $20 million in AiBtl, reinforcing its position as a lead strategic investor. This move is expected to enable AiBtl to meet licensing obligations and collaborate with global pharma partners to accelerate Phase III development of CNS drug candidates ABV-1504 and ABV-1505.
The investment aligns with ABVC's capital-light strategy, focusing on innovative partnerships through licensing and equity models. AiBtl, holding exclusive rights to ABVC's CNS drug candidates, could provide ABVC and its subsidiary BioLite with up to 46 million shares of AiBtl common stock, $7 million in milestone payments, and royalties, contingent on achieving certain milestones and sales.
Dr. Uttam Patil, ABVC Chief Executive Officer, emphasized the company's commitment to AiBtl's success, highlighting the potential for future revenue from milestones and royalties. This strategic investment not only supports AiBtl's pipeline advancement but also positions ABVC to benefit financially from AiBtl's progress in developing treatments for CNS disorders.