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Admedus to spin-off immunotherapies business; shares surge

Hong Kong investor Sun Bright Holdings will contribute up to $18 million for cancer vaccine and immunotherapies development.
shares rising chart
AHZ shares have surged from 4.3 cents to 7.5 cents over the last two weeks

Admedus Ltd (ASX:AHZ) has made further progress towards spinning off and securing up to $18 million funding for its immunotherapies business, Admedus Vaccines Pty Ltd.

AHZ’s wholly owned subsidiary Admedus Investments Pty Ltd (AIPL) has entered into a share sale agreement with Constellation Therapeutics and the other shareholders of Admedus Vaccines whereby Constellation would acquire all the shares of Admedus Vaccines.

READ: Admedus progressing towards securing $18 million investment for immunotherapies division

On completion of the transaction:

• Admedus Vaccines will be a wholly-owned subsidiary of Constellation;

• AHZ will hold a 29.13% interest in Constellation through AIPL;

• Other current Admedus Vaccines shareholders (excluding AIPL) will hold 10.8% of Constellation;

• Sun Bright Holdings, an associated entity of Star Bright Holding will hold a 60% interest in Constellation (note that Star Bright and its related entities own 22.5% of the issued shares in AHZ);

• Sun Bright will contribute up to $18 million to Admedus Vaccines over the period to November 2022 to meet ongoing funding requirements; and

• AHZ chief executive Wayne Paterson will be appointed as the chairman of Constellation, and Professor Ian Frazer will be appointed as a consultant to oversee the vaccine and immunotherapies development.

Payments on achieving milestones

The subscription agreement provides that Sun Bright must pay five instalments of $3.6 million each linked to Constellation achieving certain milestones.

If Sun Bright fails to pay all or part of an instalment, then for each instalment not fully paid, 12% of its shares in Constellation will be transferred to AIPL and the other existing shareholders in Admedus Vaccines.

The immunotherapies transaction remains subject to a number of conditions, including the signing of the subscription agreement, which means it is not currently certain the transaction will proceed.

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