GMS Holdings to invest USD 21.90 Million in Stelis Biopharma
Strides Arcolab announced that it has entered into an agreement with GMS Holdings (GMS) whereby GMS will invest USD 21.90 Million for a 25.1% stake in Stelis Biopharma (Stelis), the biotech arm of Strides, to fund its Greenfield project.The transaction is expected to close in Q4 of 2014 and is subject to customary closing conditions, regulatory and corporate approvals, as may be required.
Transaction details :
- Strides has invested USD 16.9 Million in Stelis to date.
- Strides and GMS will invest an amount of USD 61.9 Million taking total equity investment in Stelis to USD 78.8 Million
- GMS to invest USD 8.5 Million for a 25.1% stake in Stelis on closing, at a premium of 50% of the current equity investment by Strides.
- Further equity infusion of USD 40 Million by Strides and USD 13.40 Million by GMS to be in tranches based on project and product development needs over a period of 2 years, in proportion to their ownership at par.
- Stelis also has in place, a project credit line of USD 40 Million
- With the total equity infusion of USD 78.8 Million and credit line of USD 40 Million, no further funding will be required till commercialization
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