FREMONT, CA, March 21, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire – ABVC BioPharma, Inc. (NASDAQ: ABVC) ("Company"), a clinical-stage biopharmaceutical company developing therapeutic solutions in Oncology/Hematology, Neurology, and Ophthalmology, announced today that one of its subsidiaries, AiBtl BioPharma Inc. (AIBL), entered into an Agreement to exchange a 100% ownership stake in certain real estate for 1,533,333 shares of AIBL stock at $5 per share. The property is valued at approximately $7.6 million based on a third-party valuation.
"We are extremely pleased with AIBL's entry into this agreement and valuations. ABVC and its subsidiary BioLite, Inc. each own 23M AIBL shares, and we believe this agreement brings an additional value of several hundred million dollars to those assets. We further believe that this transaction demonstrates why ABVC, with a market cap currently at $12M, is order-of-magnitude undervalued," said Dr. Uttam Patil, ABVC's Chief Executive Officer. He further notes that "real estate values generally appreciate over the long term. Having this land will allow AVBC and AIBL to save costs in the future by having their controlled-condition farm to grow the Botanicals and maintain quality, which will be critical for our medications. The costs of manufacturing our Drug Product will be reduced, thus providing a more cost-effective method of bringing our product to the market."
"AIBL aims to boost shareholders' equity by investing in real estate directly related to health care and our products," said Russman Jaimes, CEO of AIBL. He added, "This real estate will be used to build controlled condition farms that can grow crops related to ABVC's botanical drugs. This will help ABVC reduce the production cost of the drug under investigation and facilitate their clinical studies at a much lower expense than purchasing the raw material from the market. Part of the real estate will be developed for a senior citizen rehab center. This development will be important in cost-cutting and revenue generation for AIBL's major shareholder, ABVC."
About ABVC BioPharma
ABVC BioPharma is a clinical-stage biopharmaceutical company with an active pipeline of six drugs and one medical device (ABV-1701/Vitargus®) under development. For its drug products, the Company utilizes in-licensed technology from its network of world-renowned research institutions to conduct proof-of-concept trials through Phase II of clinical development. The Company's network of research institutions includes Stanford University, the University of California at San Francisco, and Cedars-Sinai Medical Center. For Vitargus®, the Company intends to conduct global clinical trials through Phase III.
Forward-Looking Statements
This press release contains "forward-looking statements." The words may precede such statements "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential," or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. None of the outcomes expressed herein are guaranteed. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our product candidates on a commercial scale on our own, or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval to proceed to the next level of the clinical trials or to market our product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Contact:
Leeds Chow
Email: leedschow@ambrivis.com
