ABVC BioPharma, Inc. (NASDAQ: ABVC) experienced a significant surge of 47.63% in its stock price during the early trading session, reaching $5.61, marking a notable increase of $1.81 from the previous market close. Throughout the session, the stock hit a low of $5.11 and reached a peak of $6.87 per share.
In a major announcement today, ABVC BioPharma revealed its plans for a strategic partnership with Zhonghui United Technology (Zhonghui) Group Co., Ltd. and its affiliated enterprises.
The proposed collaboration involves an equity transfer deal, valuing real estate assets at approximately $7.4 million. The primary objective behind this partnership is to establish a large-scale health and wellness base in Chengdu, China.
The intended partnership aims to create an integrated platform fostering cooperation between researchers and industry leaders.
As part of the agreement, ABVC BioPharma plans to transfer common shares to Zhonghui at $20 per share, entitling them to a twenty percent ownership of Zhonghui’s property near Chengdu, valued at $37 million by an independent valuation company, and a piece of land already owned by Zhonghui in the same area.
The signing of the term sheet with Zhonghui, a wholly owned corporation founded in 2020 with substantial assets totaling $4.4 billion, an annual revenue of $4.2 billion, and a net profit of $757 million, represents a major milestone for ABVC BioPharma.
With this initiative, ABVC aims to establish a comprehensive facility, fostering collaborations between industry, academia, and research, and promoting innovation, knowledge exchange, and sustainable development in rural areas surrounding Chengdu. ABVC’s expertise in Oncology/Hematology, Neurology, and Ophthalmology will further aid its global expansion efforts.
ABVC’s subsidiary, BioKey, Inc., has entered the second year of a 3-year agreement to manufacture dietary supplements derived from Maitake mushrooms in tablet and liquid forms.
The partnership with Define Biotech Co. Ltd. has proven fruitful, with BioKey set to receive USD $1.0 million amid the increasing demand for mushroom-based nutritional supplements. This agreement grants Define Biotech the right to distribute the Maitake mushroom-containing nutritional supplement in China and Taiwan.
ABVC’s prowess in conducting clinical trials has enabled them to extract Maitake mushroom ingredients with unmatched purity and consistency compared to competitors.
The production of dietary supplements serves as a promising revenue stream for ABVC BioPharma while concurrently advancing clinical trials for their other drug candidates. ABVC BioPharma’s recent surge in stock price, strategic partnership with Zhonghui, and successful dietary supplement ventures reflect the company’s dedication to innovation and global expansion, with a focus on advancing health and wellness initiatives in the pharmaceutical and nutraceutical realms.
