26 April 2016
Joint Venture Agreement in China
Collagen Solutions plc (AIM: COS), the developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, announces that it has entered into a joint venture agreement with Cre8ive (CRE8IVE: China Resources & Investment Vehicle Limited "Cre8ive").
The Collagen Solutions Group provides collagen to a global customer base covering North America, Europe and Asia. In order to maximize the potential of our business and to open up the market in China, the Company has entered into an agreement to form a Joint Venture company, with offices and staff in Beijing. Cre8ive is a conglomerate, operating solely within the People's Republic of China, focusing on exclusive or high barrier to entry investment opportunities.
Collagen Solutions will provide the initial investment into the JV, in a controlled manner, whilst Cre8ive will provide the territory expertise, support services, administrative and regulatory support in Beijing. The initial holding of the joint venture company will be 60:40 in favour of Collagen Solutions.
Dr. Stewart White, Chief Executive Officer of Collagen Solutions plc said: "The purpose of the Joint Venture company will be to expedite the marketing and supply of our medical grade collagen materials and regenerative medicine products to customers within the People's Republic of China. It is our intention to build our business in China as well as exploring opportunities to expand our activities in finished medical devices. We believe that we have found a trusted partner in Cre8ive and that the Company can benefit from their many years' experience in the territory. Our control of the JV significantly de-risks this investment, whilst opening the business to significant upside both in terms of the supply of raw materials, but also the ability to increase value added opportunities, in what is clearly a sizeable and growing healthcare market forecast to grow to US$2.5bn in wound care alone by 2020."
|Collagen Solutions Plc|
|David Evans, Chairman||Tel: 07740 084 452|
|Stewart White, CEO||Tel: 0141 648 9100|
|Panmure Gordon & Co|
|Robert Naylor (Corporate Finance)||Tel: 020 7886 2714|
|Maisie Atkinson (Corporate Broking)||Tel: 020 7886 2905|
|Walbrook PR Ltd||Tel: 020 7933 8780 or email@example.com|
|Mike Wort||Mob: 07900 608 002|
|Anna Dunphy||Mob: 07876 741 001|