Cellma terminates acquisition of Bebik shares... Focuses on securing soundness for transaction resumption

[Asia Economy Reporter Lim Jeong-su] Cellma Therapeutics has terminated the share acquisition agreement for Bebig, a Russian radiation medical device company, and is focusing on securing financial soundness to resume the deal.

Cellma announced on the 29th that it has decided to cancel the stock transfer agreement signed to acquire Bebig. Cellma explained that although it signed a contract last year to acquire 51% of Bebig's shares, it announced the termination of the contract considering the burden of additional fundraising and the current company situation.

However, Cellma stated that although it is formally a contract termination, in substance it is a sale of Bebig's management rights. According to Cellma, instead of transferring the rights to acquire Bebig to MP Corporation (hereinafter ‘MP Co’), a Russian vaccine distribution and manufacturing company, Cellma acquired convertible bonds (CB) worth 21 billion KRW issued by MP Co. As a result, Cellma effectively sold Bebig to MP Co for 21 billion KRW, enabling it to secure a more stable financial structure. Cellma claimed, "We removed Bebig risk to resume the transaction."

MP Co, from which Cellma holds CB, is striving to produce the Russian vaccine Covivac domestically within this year. Earlier this year, key personnel from the Chumakov Institute visited Korea to conduct a site inspection of the production facility, bringing technology transfer within reach. Additionally, in August, MP Co applied for a preliminary review for domestic approval of the Covivac vaccine through the Ministry of Food and Drug Safety.

A Cellma official said, "If production starts within this year as planned by MP Co, Cellma is highly likely to significantly improve its financial soundness next year through the sale of the acquired CB and other means," adding, "Despite difficult circumstances, we are steadily achieving results, such as receiving global Phase 3 approval in Romania for Neovir on the 18th, and we continue to make consistent efforts to improve the company."

This content was produced with the assistance of AI translation services.