FREMONT, CA - ABVC BioPharma, Inc. (NASDAQ: ABVC), a biopharmaceutical company engaged in the development of therapeutic solutions, has announced the acquisition of TT Life Company by its subsidiary AiBtl BioPharma Inc. The deal, which includes Malaysian Import Trading Company and Taiwanese Direct Sales Company, is valued at approximately $8.33 million.
AiBtl BioPharma has acquired 100% of TT Life's shares through a share swap, exchanging 1.66 million of its shares at a price of $5 per share. The strategic acquisition is expected to bolster AiBtl's presence in the precision medicine market and consolidate financials, including revenue, profit, and cash flow with TT Life.
The merger aims to combine AiBtl's global development expertise with TT Life's design and manufacturing capabilities in precision medicine. The goal is to create innovative products that integrate artificial intelligence (AI) with everyday life, improving convenience, efficiency, and wellness for consumers worldwide.
Russman Jaimes, CEO of AiBtl, expressed excitement over the potential opportunities stemming from the acquisition, highlighting the combined strengths of both companies in the precision medicine market. Dr. Uttam Patil, CEO of ABVC, also commented on the acquisition's expected positive impact on ABVC's financial statements, given that ABVC holds a 59% consolidated share of AiBtl.
The acquisition is anticipated to generate synergies across research and development, manufacturing, distribution, and financial operations. AiBtl plans to leverage TT Life's product design and manufacturing expertise to fast-track the development and commercialization of next-generation precision medicine AI solutions.
TT Life Company, known for its precision medicine solutions, has a strong marketing presence in Asia, especially in Malaysia. The company's projected sales for 2024 are estimated at $10 million, with net profits of 11%.
This news is based on a press release statement and reflects the companies' current expectations and projections about future events. The share valuations mentioned are based on private negotiations and not on third-party or market prices.
InvestingPro Insights
As ABVC BioPharma, Inc. (NASDAQ: ABVC) navigates its recent strategic acquisition, investors are closely monitoring the company's financial health and market performance. Here are some key metrics from InvestingPro that shed light on ABVC's current standing:
- The company's market capitalization stands at a modest $10.74 million, reflecting its position in the market.
- ABVC's price to book ratio for the last twelve months as of Q4 2023 is 1.28, indicating how the market values the company's net assets.
- The latest revenue figures for the same period show a significant decrease, with revenue growth plunging to -84.28%, which could be a point of concern for stakeholders evaluating the company's top-line performance.
InvestingPro Tips suggest that while the acquisition of TT Life Company may offer potential growth and expansion for ABVC, it is essential for investors to consider the company's current financial metrics and market performance in their analysis. With a concerning revenue decline and a challenging profitability outlook as indicated by negative P/E and PEG ratios, investors should weigh these factors in their decision-making process.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights and tips. Currently, there are 15 more InvestingPro Tips available to subscribers, which can provide a deeper understanding of ABVC's financial health and market prospects. To access these tips and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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