News: NuSep Holdings company PrIME Biologics banks SGD$6.55M

NuSep Holdings' (ASX:NSP) Singaporean subsidiary PrIME Biologics has completed the first tranche of the investment transaction for PrIME Biologics Private has occurred.

NuSep has developed a unique technology for biological separations called PrIME.

The first tranche of SGD$6.55 million funding has now been received by PrIME Biologics.

Malaysian entity, Xeraya Capital Labuan and JP Asia Prime Capital are based in Singapore and are the primary investors.

The funding will be used by PrIME Biologics to continue to develop its proprietary technology to separate valuable proteins including albumin and IVIG from human blood plasma in its Singapore cGMP facility.

The funding will also be used to repay loans made over time by NuSep Holdings to PrIME Biologics.

NuSep Holdings will use some of these funds to repay monies owing by it as well as to assist in the development of other applications from the core technology such as SpermSep. 

Xeraya Capital JP Asia Prime Capital have agreed to make an aggregate investment of SGD$16 million via the acquisition of Series A Preference Shares in PrIME Biologics.

NuSep's shareholding in PrIME Biologics will be converted to Series B Preference Shares, which do not have voting rights.

The investment of SGD$16 million, based on a pre-money valuation of SGD$27 million, is to take place via a series of four tranches with the first tranche of SGD$6.5 million now received.

Following the investment of SGD$16 million into PrIME Biologics, NuSep Holdings will retain 60.22% of PrIME, and will be free to pursue all applications of the core technology apart from applications to do with human blood plasma.

Analysis

Th receipt of the funds by PrIME continues the positive momentum at NuSep under new executive chairman Alison Coutts. 

The PrIME Biologics deal holds a number of advantages in that Xeraya Capital Labuan, which is a sovereign Malaysian private equity fund - invests in life sciences.

So its investment is an effective third party validation of the core technology by a specialist life science Malaysian sovereign fund.

Xeraya not only provides the funding, but provides specialist expertise, without tapping NuSep’s shareholders.

The 60% holding provides a value of circa SGD$27 million to NuSep, which has a market cap of just $11 million.

NuSep can focus on other lines of business like SpermSep, where there are significant growth markers.

This services both the in vitro fertilisation (IVF) market for humans and Artificial Insemination (IA) market for livestock.

Current IVF and AI methods are known to have adverse effects.

So it is all ahead for the new NuSep.