OncoSec Medical (NASDAQ:ONCS) is up 34% premarket on entering into a strategic transaction with Grand Decade Developments Limited, a direct, wholly-owned subsidiary of China Grand Pharmaceutical and Healthcare Holdings, and its affiliate, Sirtex Medical US Holdings.
OncoSec will receive a $30M investment from CGP and Sirtex at $2.50/share.
Upon the closing of this transaction, CGP and Sirtex together will hold 53% of OncoSec common shares and will be entitled to three of nine seats on the OncoSec Board of Directors.
OncoSec will grant Grand Decade and its affiliates an exclusive license to develop, manufacture, commercialize, or otherwise exploit OncoSec's current and future products, including TAVO and OncoSec's new Visceral Lesion Applicator (VLA), in Greater China and 35 other Asian countries (the "Territory").
Grand Decade will pay up to 20% royalties on the net sales of such products in the Territory.
Sirtex will support and assist OncoSec with pre-marketing activities for TAVO and VLA in exchange for low single-digit royalties.
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