multiplayerroulette| Shenghe Bio-B (02898.HK) is expected to be launched on May 24, introducing the Economic Development Future as the cornerstone

Gelonghui 16 May, Sheng he Bio-B (02898)Multiplayerroulette.HK) issue an announcementMultiplayerrouletteThe company intends to sell 3415 of its shares worldwideMultiplayerroulette.180,000 shares, 3.4152 million shares offered by Hong Kong, China and 30.7366 million shares offered internationallyMultiplayerrouletteThe offering price will be HK $13.50 per offer share, with China International Capital Corporation as the exclusive sponsor, and the shares are expected to be listed on the main board of the Stock Exchange on May 24, 2024.

Founded in 2018, the company is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of biological agents for the treatment of cancer and autoimmune diseases. The company has three core products, namely IAH0968, IAP0971 and IAE0972, all of which are independently developed. IAH0968 is an antibody-dependent cell-mediated cytotoxicity ("ADCC") enhanced monoclonal antibody ("mAb"). The company has launched phase II clinical trials for biliary tract cancer ("BTC") and colorectal cancer ("CRC"). Both IAP0971 and IAE0972 are antibody cytokines, and the company has completed phase I clinical trials for advanced solid tumors, including non-small cell lung cancer ("NSCLC") and CRC. As of the last practical date, the company has nine pipeline products, three of which are in the clinical stage and focus on cancer treatment, in addition to the core products.

The Company has entered into a cornerstone investment agreement with Nanjing Economic Development Future Technology Industry Investment Partnership (Limited Partnership) ("Economic Development Future") under which, subject to certain conditions, Kai Future has agreed to subscribe or procure its designated entity to subscribe for a total amount of US $5.4 million (equivalent to approximately HK $42.2 million) subject to certain conditions. Based on the offer price of HK $13.50 per share, the total number of offer shares to be subscribed in the future is 3.0962 million offer shares, accounting for approximately 9.07 per cent of the offer shares to be issued under the Global offer and approximately 1.98 per cent of the total issued share capital of the company immediately following the completion of the Global offer (assuming that all Series A preferred shares have been converted into shares on an one-to-one basis).

Based on the offering price of HK $13.50 per share, the company estimates that the net proceeds from the global offering will be approximately HK $391.6 million. The company intends to spend 28.2% of the net proceeds from the global sale, or about HK $110.4 million, on IAH0968's ongoing and planned clinical trials in China (mainly including the cost of raw materials and consumables used in clinical trials, the salaries and benefits of related clinical trial teams and the costs associated with recruiting patients and hiring external consultants) 35.8% or about HK $140.1 million will be used for IAP0971's ongoing and planned clinical trials in China (including the cost of raw materials and consumables used in clinical trials, the salaries and benefits of related clinical trial teams, and the costs associated with recruiting patients and hiring external consultants) 36.0% or approximately HK $141.1 million will be used for IAE0972's ongoing and planned clinical trials in China (mainly including the cost of raw materials and consumables used in clinical trials, the salaries and benefits of relevant clinical trial teams, and the costs associated with recruiting patients and hiring external consultants).