ABVC BioPharma, Inc., a clinical-stage biopharmaceutical company, has announced the conversion of a $100,000 convertible note into 10,000 shares of common stock in AiBtl BioPharma Inc. at a conversion price of $10 per share, backed by an independent third-party valuation. This move underscores ABVC’s commitment to AiBtl, with plans to invest up to $20 million over time to support AiBtl’s licensing obligations and collaboration with global pharma partners for Phase III development.
The strategic investment aligns with ABVC’s capital-light strategy, focusing on innovative partnerships through licensing and equity models. AiBtl holds exclusive rights to ABVC’s CNS drug candidates, ABV-1504 and ABV-1505, under a licensing agreement that includes equity, milestone payments, and royalties. This partnership not only strengthens AiBtl’s pipeline advancement but also positions ABVC to benefit from future revenues.
Dr. Uttam Patil, ABVC Chief Executive Officer, emphasized the company’s dual role as both licensing partner and anchor investor, highlighting the investment’s role in AiBtl’s success and ABVC’s financial prospects. The collaboration between ABVC and AiBtl represents a significant step forward in the development of botanical-based therapeutics for CNS disorders, with a focus on Asia-Pacific markets and potential global partnerships.
This development is crucial as it highlights the growing importance of strategic investments in the biopharmaceutical sector, particularly in the development of innovative treatments for CNS disorders. The commitment of up to $20 million by ABVC not only provides AiBtl with the necessary resources to advance its drug candidates but also reflects confidence in the potential of botanical-based therapies to address unmet medical needs.
This news story relied on content distributed by None. Blockchain Registration, Verification & Enhancement provided by NewsRamp
. The source URL for this press release is ABVC BioPharma Strengthens Investment in AiBtl BioPharma with Equity Conversion and Future Funding Commitment.