Benzinga | Jun 14, 2021 12:49PM EDT

Avalon GloboCare Adds Cell Therapy-Based Candidates For Cancer With SenlangBio Acquisition: Highlights

* Avalon GloboCare Corp (NASDAQ:AVCO) has agreed to acquire Hebei Senlang Biotechnology, dubbed SenlangBio, a China-based cell therapy company, in an all-stock transaction.

* In connection with the transaction, Avalon will issue 81 million shares of its common stock.

* The acquisition will add SenlangBio's diverse and broad pipeline covering solid tumors and hematologic malignancies, including both autologous and off-the-shelf cell therapy programs.

* The acquisition adds 16,000 square-foot large-scale bio-manufacturing capabilities and capacities, including: Five production lines are dedicated to autologous CAR-T with an estimated annual capacity to produce 5,000-unit doses. Two universal (off-the-shelf) production lines with an estimated annual output of 10,000-unit doses of CAR-??T cell therapy products.

* An institutional healthcare investor has also agreed to invest approximately $$30 million in exchange for about 15.6% of the equity ownership of SenlangBio in a private placement financing.

* Management: David Jin will continue to serve as President and CEO of Avalon GloboCare and co-CEO of the SenlangBio subsidiary.

* Jianqiang Li, scientific founder and CSO of SenlangBio, will join the board of directors of Avalon and serve as the CTO of Avalon.

* Price Action: AVCO shares are down 2.42% at $1.21 during the market session on the last check Monday.