Hadasit Bio-Holdings (HBL) which invests in R&D companies in the medical and bio-technology fields that are in the clinical stages or advanced stages of preparations towards clinical trials, signed a letter of intent (LoI) with a Chinese Business Group to raise $2,000,000.

The Chinese Business Group specialises in the health sector with a focus on the pharmaceutical industry, and is a strategic investor with knowledge, R&D connections, and marketing and manufacturing capabilities in China in the biomed field.

As part of the letter of intent, it was stated that upon the signing of a binding agreement between the parties, Hadasit Bio will do its best efforts to implement the following in the company and its portfolio companies: The Business Group will be granted with the priority to be entitled with exclusive rights for manufacturing and distribution of the technologies and products of the portfolio companies of Hadasit Bio including exclusive rights for the use of the patents in China’s territory; Hadasit Bio will establish an R&D centre in China; regulatory approvals in China will be submitted subject to further investment by the Chinese Business Group, and applications for regulatory approvals outside of China will be submitted.

Tami Kfir, chief executive officer of HBL Group, said “The letter of intent is a vote of confidence in the business potential of the HBL Group’s portfolio companies, the products of the portfolio companies, as well as in the unique model we have with Hadassah Medical Center. The Chinese Business Group has manufacturing and marketing capabilities, as well as global connections in the healthcare industry and strategic alliances with hospitals in China which, according to our assessment, will provide us with greater accessibility to penetrate the Chinese market.”

“I believe that as the transaction is completed, these advantages will enable the HBL Group to implement its work plans and to promote the Group's operations, as well as the portfolio companies’ operations."

Upon the signing of a binding agreement with the Chinese Business Group, it will hold, after the investment, up to approximately 25 per cent of Hadasit Bio’s issued share capital and paid-up capital, and the voting rights after the allotment, at a price reflecting a company pre-money valuation of $6,000,000.

Completion of the transaction is subject, among other things, to receive the general meeting’s approval of the transaction, the stock exchange’s approval for the listing of allotted shares and underlying shares, and other conditions customary in transactions of this kind.

The investment funds will support Hadasit Bio’s plans for further investments in the portfolio companies and its influence over strategic moves that are expected in the companies, both in the R&D plans, as well as in the business activities. Hadasit Bio has significant holdings (at least over 20 per cent) in 5 out of 6 of the portfolio companies, including in Enlivex (25.83 per cent), in which Hadasit completed a strategic move to bring in a group of investors led by Shai Novik for a total investment of $8,000,000. Enlivex is taking steps towards entering an advanced clinical trial phase IIb or phase III (according to FDA’s guidelines and approval) as an orphan indication for the treatment of GVHD; in CellCure Neuroscience (21.2 per cent), which is developing a unique technology based on fetal stem cells for cellular treatment of the DRY- AMD disease (Age-Dependent Retinal Atrophy), which received FDA and Helsinki approval to enter a first clinical trial phase I/IIa; and in KAHR Medical Corporation (48.91 per cent), which is developing a new type of protein and is preparing to enter a clinical trial phase I/II in the coming year with lymphoma patients.

Hadasit Bio-Holdings was established and issued by Hadasit, the tech-transfer company of Hadassah Medical Center in order to promote the knowhow and experience gained in the research laboratories of Hadassah Medical Center.