FAST NEWS: Boan Bio pledges shares as collateral for $41 million loan
The Latest: Shandong Boan Biotechnology Co. Ltd. (6955.HK) announced on Friday that it has entered into a loan facility with China Jingu International Trust, whereby Jingu has agreed to lend it 300 million yuan ($41.4 million).
Looking Up: Boan believes the financing will enable it to rapidly develop and market a variety of products, potentially accelerating their pace of commercialization.
Take Note: The company will pledge 74.39 million shares to the lender as collateral for the loan.
Digging Deeper: Established in 2013, Boan was acquired by Luye Pharma (2186.HK) in 2019, and then spun off not long after that. It was listed in Hong Kong in late December 2022. Hong Kong Stock Exchange rules state that biotechnology companies without revenues and profits can file for listings, but also require them to add the “B” marker to their tickers to caution investors to their higher risk level. But strong sales for its two biosimilar drugs helped Boan become one of eight biotech stocks to lose the marker just four months after its listing.
Market Reaction: Shares of Boan fell on Monday, closing down 1.3% at HK$10.46 by the midday break. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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