CK Life Sciences (HKG:0775) subsidiary Sealbond sold the entire stake in Canadian company Pharmagesic to Nasdaq-listed Virios Therapeutics for $100 million, according to a Monday filing with the Hong Kong Stock Exchange.
Virios will pay for the acquisition through the issuance of 211,383 shares of purchaser common stock and 2,108.3854 shares of non-voting purchaser preferred stock, the filing said.
One purchase preferred stock will be convertible into 10,000 shares of purchaser common stock, according to the filing.
Conjoint, another CK Life Sciences subsidiary, lent HK$19.5 million to Virios, the filing said.
Both transactions will result in the business combination of Wex Pharmaceuticals, a Canada-based subsidiary of Pharmagesic, the filing said.
Shares rise 8% during Tuesday's afternoon trading.
Price (HKD): $0.55, Change: $+0.030, Percent Change: +5.77%
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