Singapore biotech firm secures $100m via share subscription facility deal

Austrianova, a biotech company with operations in Singapore and Thailand, said it has signed an agreement with European alternative investment group Global Emerging Markets (GEM) Global Yield for a share subscription facility of up to US$100 million for a 36-month term following a public listing.

Photo credit: Austrianova

The deal allows Austrianova to draw down funds from the facility by issuing shares of common stock to GEM. The Singapore-based biotech firm will control the timing and the maximum size of its drawdown deals, according to a statement.

Additionally, Austrianova has issued warrants to GEM that would allow the private equity firm to purchase up to 4.2% of Austrianova’s stock upon its public listing.

The biotech firm further said that it is looking to go public either via a special purpose acquisition vehicle (SPAC) or traditional initial public offering (IPO) route. However, it didn’t mention which stock exchange it is looking to list on and the timeline of the listing.

Founded in 2001, Austrianova uses proprietary technology to encapsulate cells and bacteria for use in the medical space. Its announcement comes as the company aims to boost its production capacity in order to satisfy strong global demand.

“With certainty of capital upon listing on a national public stock exchange, Austrianova is now well-positioned as the company enters its next stage of development,” company CEO Brian Salmons said in a statement.

GEM is a US$3.4 billion global investment group that manages a diverse set of investment vehicles focused on emerging markets. The company said it has completed over 400 transactions in 70 countries, including those with L’Officiel, Hyundai Securities, and Singapore’s Teledata.