SINGAPORE (Jan 14): Best World has agreed to acquire a 15% stake in Celligenics, a biomedical A*STAR spin-off start-up, in two investment phases.
The first phase will see Best World subscribe for 12.5% of Celligenics shares for $5.625 million, which will be funded by the group’s internal resources.
The second phase will commence 18 months after the first is completed.
It will allow Best World or its designated wholly-owned subsidiary to exercise its right to subscribe for new shares in Cellgenics such that its shareholding in the company is raised to 15% on a fully-diluted basis, and possibly involve subsequent funding to Celligenics should the business scale up in future.
Best World estimates Celligenics’ issued and paid up share capital to stand at $805,000, comprising 805,000 shares as at Jan 14, while its net liabilities are approximately $349,000 as at end-2017.
In a Monday filing, Best World says it believes its investment in Celligenics is synergistic with its current business in the group’s health & wellness industry.
This is because the group intends to collaborate with Celligenics to develop “the next generation of cutting edge stem cell-based products” focused on the healthcare and wellness industry categories.
Celligenics may also leverage on Best World’s regional markets and sales network as well as management resources to achieve greater operational efficiency and gain immediate market access, adds the group.
Best World’s executive director and COO, Huang Ban Chin, currently holds a 17% equity interest in Celligenics.
Shares in the group closed 2 cents lower at $2.64 on Friday.
