Join our daily newsletter At The Bell to receive exclusive market insights
- Life-science company Invion (IVX) has announced a new partnership, product, and $4.5 million capital raise
- The company has teamed up with RMW Cho Group to co-develop Photosoft technology in the treatment of atherosclerosis and infectious diseases
- Photosoft is essentially the next generation of Photodynamic Therapy (PDT) tech, which Invion has been testing as a cancer treatment
- As part of the partnership, RMW will invest $4.5 million into Invion via a share placement deal with IVX shares each priced at 1.4 cents each
- However, part of those funds will go back to RMW, as Invion must pay a $2.25 million fee to develop the Photosoft tech
- IVX is also on the line to pay 25 per cent of all non-clinical studies in the development of the product, and 75 per cent of all clinical studies
- Invion shares have come out of a trading halt, to trade down 22.5 per cent in morning trade at 1.6 cents each
Life-science company Invion (IVX) has announced a new partnership, product, and $4.5 million capital raise.
The company announced on Wednesday it had signed a co-development agreement and exclusive distribution and licence agreement with RMW Cho Group.
Together, the two businesses have agreed to co-develop Photosoft technology in the treatment of atherosclerosis and infectious diseases
Photosoft is essentially the next generation of Photodynamic Therapy (PDT) which Invion has been testing as a cancer treatment.
As part of the partnership, RMW has agreed to invest $4.5 million into Invion via a share placement deal.
Under the placement, IVX shares are priced at 1.4 cents each — a 2.1 per cent discount to the five-day volume-weighted average price of Invion shares.
However, Invion won’t pocket all of the funds from the placement as it needs to pay RMW a $2.25 million one-time fee to co-develop the Photosoft tech.
IVX is also on the line to pay 25 per cent of all non-clinical studies in the development of the product, and 75 per cent of all clinical studies.
“I am very pleased to welcome the new investors to Invion as we expand the opportunities to apply the novel PhotosoftTM technology to new indications and markets,” Invion Independent Non-executive Director Alistair Bennallack said.
The company will walk away with the exclusive distribution rights to the Photosoft technology in the Asia Pacific region.
It’s also free to use the extra funding from RMW on its existing research and development activities for cancers.
Finally, the entire deal is subject to shareholder approval, which IVX will seek in a meeting in the coming months.
Invion shares have come out of a trading halt, to trade down 22.5 per cent in morning trade at 1.6 cents each
