candywaysbonanza2| KangLoong Chemical Corporation plans to sell equity in its shareholding company to Johnson & Johnson for US$102 million

May 17candywaysbonanza2, Kanglong Chemical announced that Kanglong Hong Kong Investment, a wholly-owned subsidiary of the company, holds 10% of Proteologixcandywaysbonanza2.21% stake will be sold by Proteologix to Johnson and Johnson in a merger for a consideration of approximately US$102 million.

After the merger and acquisition takes effect, Johnson & Johnson will be required to pay a down payment of approximately US$86.821 million to Camdragon Chemical through the payment agent within 60 days; Johnson & Johnson or its affiliates will complete the R & D project milestone event stipulated in the agreement, it will pay approximately US$15.321 million to Camdragon Chemical through the payment agent.

According to the announcement, the equity in Proteologix held by Kanglong Hong Kong Investment mainly comes from September 2021 and November 2022, and was subscribed by Kanglong Chemical Corporation with its own funds of US$3 million and US$4 million respectively.

Kanglong Huacheng said that this sale of equity will help the company increase cash inflows, supplement cash flow, promote the company's R & D service capabilities, and further consolidate the company's full-process, integrated pharmaceutical R & D service platform, thereby better meeting customer needs and promoting The company continues to develop healthily and maximize shareholder value. According to preliminary calculations by the financial department, this transaction is expected to have a significant positive impact on the company's 2024 net profit.