RepliCel Life Sciences Inc. (RP:TSX.V; REPCF:OTCQB) and YOFOTO Health Industry Co. Ltd. received approval from their respective countries to complete the investment part of the partnership agreement between them, and that transaction is expected to occur soon.
Once the deal closes, the two companies can begin efforts to commercialize RepliCel's products in Greater China, which encompasses mainland China, Hong Kong, Macau and Taiwan.
"We are very excited about what we have put in place," RepliCel president and CEO R. Lee Buckler said in a news release. "Upon the closing of the investment, shareholders should expect to see RepliCel's programs and activity gain significant momentum over the coming months with a particular focus on bringing its medical device to market."
The investment consists of YOFOTO purchasing CA$5.09 million worth of RepliCel common shares at CA$0.95 apiece and a 20% warrant exercisable at CA$0.95 per share for two years. YOFOTO also will make milestone and sales royalty payments and will finance, over the next five years, certain RepliCel programs and construction of a cell processing facility in Greater China.
Those programs include further development and commercialization in the East Asian region of RepliCel's tendon regeneration cell therapy (RCT-01), its skin rejuvenation cell therapy (RCS-01) and its injection technology for dermal applications (RCI-02). (RCI-2 as a hair restoration treatment is excluded.) Once the transaction closes, RepliCel will provide an update with details of the path forward.
Correction: an earlier version of this article incorrectly listed the purchase price of RepliCel common shares at CA$0.09. The correct figure is CA$0.95.
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