Gelonghui May 17 丨 Kanglong Chemical Industry (03759megamoolah150freespinsnodeposit.HK) issued an announcementmegamoolah150freespinsnodepositPharmaron (Hong Kong)Investments Limited, a wholly-owned subsidiary of the company, holds a minority interest of approximately 10.21% of Proteologix's issued share capital, which is accounted for as an equity investment at fair value through profit or loss in the company's consolidated financial statements. Proteologix has notified the company that Proteologix has reached an agreement with Johnson & Johnson (the buyer) for the buyer to acquire Proteologix through a merger. On May 15, 2024, Johnson & Johnson, its wholly-owned subsidiaries, Proteologix and representatives of its securities holders entered into a localization plan and merger agreement, pursuant to which the parties agreed to merge Proteologix with a wholly-owned subsidiary of the buyer.
After the merger, existing Proteologix shareholders will be paid a total consideration of up to US$1 billion, including approximately US$150 million in milestone payments after certain milestones are reached.
The Group is expected to receive an initial payment of approximately US$86.821 million and a milestone payment of approximately US$15.321 million after reaching certain milestones under the merger agreement. The Group intends to use the proceeds from the combination to supplement the Group's working capital to coordinate with the growth and development of the Group's main business as a full-process, integrated pharmaceutical R & D service platform.
It is reported that Proteologix is an exempted company registered in the Cayman Islands and is mainly engaged in the development of innovative biopharmaceuticals for the treatment of autoimmune diseases.