Microchip Biotech: Plans to provide 350 million yuan to its wholly-owned subsidiary to support the advancement of the new drug manufacturing base project

Recently, Microchip Biotech announced that the company has decided to use part of the raised funds to make capital contributions, increase capital, and provide loans to its wholly-owned subsidiary Pengzhou Microchip Pharmaceutical Co., Ltd. to implement the fundraising project.

The specific amounts are 30.8 million yuan for capital contributions, 40 million yuan for capital increase, and 279 million yuan for loans, totaling 350 million yuan. The funds will be exclusively used for the “Pengzhou Microchip Original Innovation Drug Manufacturing Base (Phase I) Project.”

After this capital increase, Pengzhou Microchip’s registered capital will increase to 100 million yuan, remaining a wholly-owned subsidiary of the company. The total amount of funds raised, as mentioned in the announcement, is 950 million yuan, with a net amount of 933 million yuan after deducting related expenses.

The company stated that this use of funds aligns with its long-term strategic development plan, aims to optimize resource allocation, improve overall resource utilization efficiency, and does not constitute related-party transactions or major asset restructuring.

(Microchip Biotech Announcement)

(Edited by: Yang Yan, Lin Chen)

Keywords: Healthcare