MONDE NISSIN Corp. said on Thursday that its board of directors had authorized the subscription to preferred shares in a US company engaged in food product research.
In a stock market disclosure, the listed food and beverage maker said the subscription was priced at up to $2 million and represents 1.89% of the outstanding capital stock of Terramino, Inc.
Monde Nissin described California-based Terramino as into 鈥渞esearch, development, and commercialization of food products made from koji.鈥
It said Terramino, which is at its business lifecycle鈥檚 early stage, uses fermentation technology in developing koji and might provide 鈥渃ollaboration opportunities鈥 due to its similarity to the core ingredient of products made by another company.
鈥淭his subscription is subject to the execution of the relevant transaction documents,鈥 Monde Nissin said.
The company said Terramino had been valued at $75 million in line with the issuance of the Series B preferred stock, of which it is buying up to 665,845 shares at $3.0037 apiece.
鈥淭his valuation has been accepted by the other venture capital Series B investors, and has been used to determine the share price and amount of consideration,鈥 it added.
It added that the expected benefits from the deal include a return on investment after the eventual public listing or sale of Terramino, and 鈥減otential collaborative research, development, and commercial opportunities.鈥
