BRUSSELS, June 16 Belgian biotech group Cardio3 said on Monday that it would issue 25 million euros ($34.04 million) worth of new shares to Hong Kong-based holding group Medisun International, and enter the Chinese market with a joint venture.
The company said it would issue the shares at 44 euros per share giving Medisun an 8 percent stake. The group's shares traded at 43.96 euros before being suspended by the regulator on Monday morning pending the announcement.
Additionally, Medisun would also buy 25 million euros worth of shares from existing shareholders over the next 8 months.
As part of the deal, Cardio3 will form an Asian joint venture with Medisun to start clinical trials for its main experimental product, heart drug C-Cure. Medisun will supply 20 million euros to finance the trial.
Once the clinical trials have started, Cardio3 will own 30 percent of the joint venture, which will focus on China, Hong Kong and Taiwan. ($1 = 0.7345 Euros) (Reporting by Robert-Jan Bartunek)