OncoSec Medical’s share price increased by 35% upon news of Chinese acquisition
Oct 11, 2019 (China Knowledge) - NASDAQ-listed OncoSec Medical Incorporated (ONCS) have seen its share price surged after news that 53% stake in the company has been acquired by China Grand Pharmaceutical and Healthcare Holdings Ltd. (0512) and affiliate company Sirtex Medical Ltd.
The U.S.-based biomedical firm’s stocks increased by around 34.8% to close at USD2.21 on Thursday, the highest since Sep 18 this year.
OncoSec Medical, which was founded in 2008, is an advanced-stage biomedical and biotechnology company focused on the development of novel therapeutic oncology products. It has extensive research and development in cancer treatments and technologies for advanced stage skin cancer patients.
China Grand Pharmaceutical and Healthcare Holdings, also known as GCE Healthcare, will purchase 10 mln shares, or a 44.2% stake, in OncoSec Medical for USD 25 mln via its subsidiary Grand Decade. Sirtex Medical will purchase 8.8% of stake for USD 5 mln.
Once the acquisition is completed, GCE Healthcare and Sirtex Medical will have three out of a total of nine seats in OncoSec Medical’s board. CGE Healthcare and its affiliate companies will also have the rights to manufacture and commercialize OncoSec’s Medical cancer treatment technologies and products.
In addition, should the deal successfully go through, CGE Healthcare will retain an option to purchase OncoSec Medical's remaining shares within 12 months after the deal closes.
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