Stemcell United goes into a trading halt while ASX reviews China partnership
Health & Biotech
Stemcell United has gone into a voluntary trading halt while the ASX reviews a deal to grow cannabis stem cells for Traditional Chinese Medicine (TCM) treatments.
Two weeks ago the market operator agreed that a move into cannabis stem cells for chinese medicine products was not a change in business activity.
But Stemcell (ASX:SCU) today told investors the ASX was reviewing the deal and asked for a suspension in trading until the agreement was finalised.
“As announced earlier on 29 March 2018, SCU is in discussion with a Chinese company on investing and collaboration on TCM products and cannabis products for beauty purpose.
“ASX is reviewing the information provided with respect to the Agreement. SCU is requesting a voluntary suspension pending the announcement being finalised.”
Stemcell United last week foreshadowed a trading suspension, saying “the discussion might drag on longer” and it might need more time to close.
The deal has been signed but the ASX is now the hold up, rather than the Chinese partner.
Stemcell United shares were flat on Wednesday morning at 3.5c. The company’s value has swung wildly in the last year, from 2c to 19.8c.