AcroMeta Group's 43F 70% owned subsidiary Life Science Incubator Holdings (LSI) has signed two memoranda of understanding (MOUs) to develop its co-working laboratory space business in China.
LSI has firstly entered into a strategic partnership with Fenglin Healthcare Industry Development Group through a non-binding to develop new business opportunities for co-working laboratory space in China.
China-incorporated Fenglin, the administrative arm of the Shanghai Xuhui government in charge of life sciences, aims to establish an integrated ecosystem of local and international stakeholders in Shanghai’s Xuhui District to accelerate biopharmaceutical innovation and development.
As part of the agreement, Fenglin will promote its co-working laboratory space with a focus on overseas biomedical science startups and small and medium enterprises (SMEs) planning to develop their business in China.
On its part, LSI will use its existing business networks to recommend biomedical sciences companies from Singapore and other countries that intend to have a business foothold in China and need co-working laboratory spaces to Fenglin.
An area of approximately 2,705 sqm is set to be leased by LSI at preferential rates to set up a “world-class co-working laboratory space” at Fenglin’s Innovation Valley Life Sciences Hub to provide a cost-effective venue with comprehensive laboratory facilities and equipment for research and development.
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AcroMeta’s executive chairman Levin Lee says: “AcroMeta will continue to capture business opportunities both in Singapore and beyond to grow and create sustainable shareholder value for its investors. The business model for the group’s co-working laboratory space business is scalable and replicable and therefore eminently suitable for international expansion.”
“China’s biopharmaceutical industry has undergone a tremendous transformation to become a thriving innovative life sciences hub driven by investments in research and development. The sector is a key focus of the Chinese government’s Made in China 2025 strategy, and we are optimistic about LSI’s long-term growth potential in collaboration with local partners,” he adds.
LSI has also signed a separate non-binding MOU with three investor parties for the setting up of a joint venture (JV) company to define the structure, ownership and operational aspects of the Fenglin MOU.
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The expected JV company will have a paid-up capital of at least $3 million, with LSI holding a 51% stake. “The investor parties are all established businessmen with deep connections to China’s medical and life science industries and will contribute their business network, expertise and experience to facilitate the smooth set-up and successful realisation of the Fenglin MOU’s objectives,” says AcroMeta in its press release.
The company adds that these MOUs reflect the group’s continued efforts to broaden its revenue stream and capture new regional opportunities.
Shares in AcroMeta closed 0.5 cents or 17.24% up at 3.4 cents on Nov 17.
