Clarification on the news article by Economic Daily NewsDecember 22, 2016
Press release by the Shihlin District Prosecutors Office, TaiwanJanuary 9, 2017
- DATE OF THE EVENT: 30 December 2016
- COUNTERPARTY TO THE CONTRACT OR COMMITMENT: AbProtix Inc., a company registered in the Cayman Islands.
- RELATIONSHIP TO THE COMPANY: None
- STARTING AND ENDING DATES (OR RESCISSION DATE) OF THE CONTRACT OR COMMITMENT: The Letter of Intent (LOI) becomes invalid automatically when the new OBI shares are issued and the shares of AP Biosciences are acquired; or at 6 months from the date of the signing of the LOI.
- MAJOR CONTENT (NOT APPLICABLE WHERE RESCINDED): In order to facilitate collaboration of technological resources in the R&D development, manufacturing, and marketing of technological resources, OBI would issue new shares to acquire a stake in AP Biosciences, pending the results of OBI’s due diligence process. Both companies agree that OBI’s stake would not exceed 70% of outstanding shares of AP Biosciences, which are presently held by AbProtix, Inc. This deal is still under negotiation and details of any related rights issues or obligations, exchange of shares, and cooperation must be approved by the Boards of Directors of both companies as well as all relevant authorities.
- RESTRICTIVE COVENANTS (NOT APPLICABLE WHERE RESCINDED): The LOI has restrictive covenants in terms of confidentiality and the prohibition of certain transactions.
- EFFECT ON COMPANY FINANCES AND BUSINESS (NOT APPLICABLE WHERE RESCINDED): This is a Non-binding LOI which only expresses the intent and consensus of cooperation between both companies. It has no effect on the finances and business of the company.
- CONCRETE PURPOSE/OBJECTIVE (NOT APPLICABLE WHERE RESCINDED): A successful collaboration is expected to shorten the development timeline and lower the costs of an antibody new drug pipeline development as well as reduce the development risks and avoid leaking of critical technological know-how to outside competitors.
- ANY OTHER MATTERS THAT NEED TO BE SPECIFIED: None