Pharmesis in share subscription agreement with Chinese R&D drug firm

PHARMESIS International on Wednesday entered into a share subscription agreement with Shenzhen Sichuang Meishi Pharmaceuticals Research And Development Co, a Chinese company that undertakes research and development (R&D) of pharmaceutical drugs.

Under the agreement, the latter will subscribe for three million new shares in Pharmesis for S$1.5 million in cash. The issue price represents a 67 per cent premium to the volume-weighted average price of 30 cents per Pharmesis share for trades done on Wednesday; the subscription shares represent 15 per cent of the total issued shares in Pharmesis.

The group said it intends to use the bulk of the net proceeds to acquire an office space here to house its headquarters. Its directors expect the group to benefit from the new strategic investor's expertise in R&D and its bushiness relationships.