ABVC BioPharma, Inc., a clinical-stage biopharmaceutical company, has taken a significant step to reward its shareholders by announcing a share dividend plan. This move involves distributing one share of AiBtl BioPharma Inc., a subsidiary, for each share of ABVC common stock owned. This initiative is expected to distribute approximately 15 million AiBtl shares, marking ABVC's first dividend payment and showcasing the company's belief in AiBtl's long-term potential and its commitment to shareholder value.
The distribution of AiBtl shares is contingent upon their inclusion in an effective registration statement under the Securities Act of 1933. AiBtl, in which ABVC holds a 57.8% stake, is focused on developing botanical-based therapeutic candidates for central nervous system disorders, targeting the Asia-Pacific markets. This strategic move not only highlights ABVC's confidence in its subsidiary's growth but also aims to strengthen its position in international business development, particularly for its CNS programs targeting MDD and ADHD markets.
Dr. Uttam Patil, ABVC's Chief Executive Officer, expressed pride in the company's journey and its ability to reward shareholders, emphasizing the dividend as a testament to ABVC's confidence in AiBtl's future and its dedication to creating shareholder value. This announcement is pivotal as it reflects ABVC's strategic objectives to expand its international footprint and forge partnerships with global pharmaceutical companies, potentially impacting the biopharmaceutical industry and offering new therapeutic solutions to patients worldwide.
However, the company cautions that forward-looking statements involve risks and uncertainties, including challenges in manufacturing, financing, competition, and regulatory approvals. These factors could influence the realization of the dividend distribution and the anticipated benefits to shareholders and the company's growth trajectory.
