Avalon GloboCare Corp., a Freehold-based developer of cell-based technologies, has agreed to acquire a Chinese cell therapy company, it announced Monday.
Avalon said in a news release that it will issue 81 million shares of common stock to acquire Hebei Senlang Biotechnology Co. Ltd., and then will sell a 15.6% equity stake to an institutional health care investor for approximately $30 million. Avalon’s stock closed at $1.24 a share Friday.
SenlangBio’s core platforms include CAR-T cells and other candidates for solid tumors and hematologic malignancies. The deal also will include SenlangBio Clinical Laboratory, a subsidiary that provides clinical testing services, and the company’s 16,000-square-foot biomanufacturing facility.
“Today’s transaction is an affirmation of our commitment to bringing life-saving cell and gene therapies to market,” Dr. David Jin, CEO and president of Avalon, said in a prepared statement.
Jim will continue to serve as CEO and president of Avalon after the deal is completed, and will serve as co-CEO of the SenlangBio subsidiary. Jiangiang Li, scientific founder and chief scientific officer of SenlangBio, will join Avalon’s board and become its chief technology officer. SenlangBio will maintain its operations in China.
Lowenstein Sandler LLP, JunHe Law, Goodwin Proctor LLP, Friedman LLP, Marcum LLP, CEC Capital and Crescendo Communications served as advisers on the transaction.
