Major Shareholder of CARSGEN-B (02171) Transfers HK$432 Million Worth of Shares from UBS to Citibank

Stock News05-20

According to the latest data from the Hong Kong Stock Exchange, on May 19, a shareholder of CARSGEN-B (02171) transferred shares from UBS Securities Hong Kong to Citibank, with the transfer valued at HK$432 million, accounting for 4% of the company's shares. The company had previously announced that on May 15, it entered into an agreement with a major shareholder, Yijie Biotech (the seller), and joint placing agents to place 23.7 million shares via a top-up placing to no fewer than six independent professional investors. The shares represent approximately 3.99% of the enlarged share capital, with a price of HK$19.84 per share, representing a discount of about 9.49% compared to the closing price of HK$21.92 on May 14. The net proceeds from the placement are expected to be approximately HK$462 million. The company stated that approximately 70% of the net proceeds will be used for the clinical development and R&D expenses of innovative drugs globally (including China), including IND applications and clinical trials for allogeneic and in vivo CAR-T products; about 15% will be allocated for global R&D and production facility expenses; and the remaining 15% will serve as working capital and for general corporate purposes, including the establishment of a commercialization team. The board believes that this share placement will strengthen the group's financial position, accelerate the development of its R&D pipeline and expansion of indications, and broaden its shareholder base.

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