Tianjin Pharmaceutical Group International Holdings Co. Ltd. closed a $20 million strategic investment in Neuralstem Inc.
Tianjin received 28.5 million common shares and 1 million series A convertible preferred shares of Neuralstem upon closing. The preferred stock is convertible into 50,551,383 common shares of Neuralstem, subject to certain beneficial ownership limitations.
Under the terms of the investment, Tianjin is entitled to appoint one member to Neuralstem's board.
The preferred shares have no voting rights and cannot be converted if a conversion results in Tianjin having voting power in excess of 19.99% of the issued and outstanding shares of Neuralstem entitled to vote.
Tianjin Pharmaceutical is a private pharmaceutical group that focuses on four major product categories — chemical and biological medicines, green traditional Chinese medicines, innovative medical devices and modern logistics.