Avivagen (TSX-V:VIV) plans to collaborate with the Jintai group of companies for a joint venture to commercialize OxC-beta Livestock in China.
The companies plan to create a Sino-Canadian joint venture company based in Xi’an, Shaanxi province, to register and commercialize OxC-beta Livestock, initially for use in poultry and swine.
The term sheet contemplates a JV that is 51% owned by Jintai and 49% by Avivagen, with a shared board and decision making. On creation of the JV, the term sheet specifies that Jintai will invest up to $1.2-million to finance activities relating to the registration and commercialization of OxC-beta in China.
“Elimination or reduction of antibiotic use in livestock feed is important to all of China, and results from multiple trials indicate that OxC-beta should enable this goal to be achieved,” Shen Xiaobo, president of Jintai, said in a statement.
Cameron Groome, president and CEO of Avivagen, said the resources and expertise of Jintai and the proposed JV should accelerate the required processes and help make this important new product widely available to Chinese feed and livestock producers.