Biolight Life Sciences: Ioptima Divestiture Now In Progress
Edison | Apr 24, 2018 03:51AM ET
The first part of the four-stage transaction for BioLight Life Sciences Ltd (TA:BOLT)’s IOPtima subsidiary to be sold to Chengdu Kanghong Pharmaceutical Group (Chengdu) has been completed, with Chengdu investing $7m directly into IOPtima for a 19% stake in the company. We estimate BioLight will receive about $12m in Q318 as part of the next stage and can now focus on advancing remaining key value drivers Eye-D VS-101 and TeaRx. We now obtain a risk-adjusted net present value (rNPV) valuation of NIS111.3-128.1m (versus NIS112.5-134.3m, previously).
Cash infusions expected in next IOPtima deal stages
Chengdu intends to purchase the remaining IOPtima shares from the remaining shareholders (including BioLight) in three stages, each of which should lead to cash infusions to BioLight. The next stage is anticipated in Q318 and would involve Chengdu acquiring 41% of IOPtima shares from existing shareholders for $17.2m (about NIS60.7m), thus raising its stake to 60%. We estimate that BioLight will receive about $12m as part of this stage, and that it will receive between c $11m and $15.3m in total in the next two stages (slated for Q219 and Q221).
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