From the 8-K (see below), it appears that the restructuring of the TAT joint venture resulted in BRC contributing an additional $2M and Geron agreeing to pick up the rest of the R&D tab (or to arrange financing for it). Leastwise Geron isn't paying money to BRC in exchange for Geron's increased share of TAT. Here's the 8-K:
On June 14, 2007, Geron Corporation ("the Company") and the Biotechnology Research Corporation Limited, a company incorporated under the laws of Hong Kong ("BRC"), entered into an Amended and Restated Joint Venture Agreement (the "Amended JVA") and a Restructuring Agreement (the "Restructuring Agreement," together with the Amended JVA, the "Agreements") related to TA Therapeutics Limited, the joint venture in Hong Kong between the Company and BRC ("TAT"). Upon execution of the Agreements, the Company owns 75% of TAT and BRC owns 25%.
Pursuant to the Agreements, the Company paid an aggregate capital contribution of $4 million and BRC paid an aggregate capital contribution of $6 million. BRC will contribute an additional $2 million, payable in two equal installments of $1.0 million each, to support drug discovery research. Any further capital needed by TAT will be provided by either the Company or through other financing sources as may be available.
The Board of Directors of TAT shall be comprised of up to six members, of which four will be from the Company and two will be from BRC. In addition, a Joint Development Committee and a Joint Discovery Research Committee shall oversee and provide day-to-day management of the research, development, and commercialization activities of TAT.
BRC is a company established by the Hong Kong University of Science and Technology, the Company's research partner. |
