BioLight Life Sciences (OTCQX:BLGTY; TASE:BOLT) has completed the second stage of the investment in and acquisition in stages of its subsidiary, IOPtima, by Chengdu Kanghong Pharmaceutical Group of China.
Under the second sage, Chengdu purchased approximately 41% of IOPtima on a fully diluted basis for approximately $17.2-million (U.S.) at a company valuation of about $42-million.
The second stage was divided between IOPtima’s shareholders, in such a manner that Biolight’s gross share of the sale of IOPtima shares was about $12-million.
Following completion of the second stage, Chengdu holds approximately 60% of IOPtima on a fully diluted basis and the BioLight holds 26%.
The third and fourth stages of the agreement, which are expected to be completed during the second quarter of 2019 and the second quarter of 2021, include the acquisition of the remaining shares of IOPtima from shareholders, including BioLight, of about 20% fully diluted at each stage.
The future completion of the third and fourth stages of the agreement are expected to generate an additional gross cash flow of between $11-million and $15.3-million, leading to total expected gross cash flow from the sale of all of the shares in IOPtima in the second to fourth stages of $23-million and up to $27-million.
