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Investing.com -- WORK Medical Technology Group Ltd (NASDAQ:WOK) stock rose 4.5% on Tuesday after the Chinese medical device supplier announced a $1 million investment in Neologics Bioscience Inc., a Delaware-based medical technology company focused on artificial intelligence integration in medicine.
The investment gives WORK Medical a 10% equity stake in Neologics on a post-investment basis, with Neologics’s total capital reserve increasing to $10 million. The existing shareholder will retain a 90% ownership interest in the company.
Under the terms of the agreement, WORK Medical will receive corporate governance rights proportional to its equity stake, including board nomination privileges and a right of first refusal on future equity offerings from Neologics.
The investment proceeds will support Neologics’s operations, research and development initiatives, market expansion efforts, and talent acquisition. Neologics has committed to completing all necessary corporate registration procedures, shareholder filings, and equity certificate issuance within 20 working days following the execution of the agreement.
Shuang Wu, CEO and chairman of WORK Medical, described the investment as "a key step in advancing our strategic focus on innovation and global collaboration in the medical technology field." Wu added that the partnership aims to combine Neologics’s R&D capabilities with WORK Medical’s industry experience to "unlock synergies and growth potential."
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