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KUALA LUMPUR - BioNexus Gene Lab Corp. (NASDAQ:BGLC) has completed its strategic transaction with Fidelion Diagnostics and Tongshu Biotechnology, acquiring a 15% equity stake in Fidelion and securing exclusive commercial rights to the VitaGuard Tumor-Naïve Minimal Residual Disease liquid biopsy platform across Southeast Asia. The micro-cap company, with a market capitalization of just $7.81 million, is making this move despite its overall "WEAK" financial health rating according to InvestingPro data.
The transaction was structured as a share swap, with Fidelion receiving approximately 16.6% of BGLC’s outstanding stock in return. BGLC will pay the license fee for commercial rights over 24 monthly installments. This approach preserves the company’s strong liquidity position, with a current ratio of 8.3 and more cash than debt on its balance sheet, though InvestingPro data indicates BGLC has been quickly burning through its cash reserves.
The deal gives BGLC exclusive, perpetual rights to manufacture, market, and distribute the VitaGuard platform throughout the ASEAN region. This AI-enabled platform is designed for monitoring minimal residual disease, allowing clinicians to detect early signs of cancer recurrence.
"We are not only securing the engine for commercial growth in Southeast Asia; we are also now aligned as a strategic shareholder in a global AI-oncology platform," said Sam Tan, CEO of BioNexus Gene Lab Corp., in the press release statement.
The agreement includes provisions for BGLC to benefit from Fidelion’s potential future capital markets activities, including possible private financing rounds or public listings on Nasdaq or NYSE.
BGLC has initiated a commercial task force to engage hospital networks and distributors across Malaysia, Singapore, Indonesia, and Thailand as part of its regional expansion strategy.
The company aims to position itself in the growing precision oncology market in Southeast Asia, where healthcare systems are increasingly adopting advanced diagnostic technologies.
According to the press release, the transaction was designed to preserve BGLC’s financial strength while minimizing shareholder dilution as it enters this new market segment.
In other recent news, BioNexus Gene Lab Corp. has secured a significant $500 million Equity Purchase Agreement with ARC Group International Ltd. This 36-month facility grants BioNexus the ability to issue and sell registered shares of its common stock to ARC at its discretion. As part of the agreement, BioNexus issued 175,000 shares of common stock to ARC as a one-time fee, priced at $4.32 per share. Additionally, BioNexus has formed strategic partnerships with Fidelion Diagnostics and Tongshu Biotechnology to commercialize VitaGuard, a liquid biopsy platform for minimal residual disease testing. Under the agreements, BioNexus will receive shares equal to at least 15% of Fidelion’s fully diluted share capital. In return, Fidelion will obtain newly issued, restricted BioNexus shares equal to 19.9% of BioNexus’s pre-money outstanding shares. These developments reflect BioNexus’s efforts to expand its financial and technological capabilities.
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