Holista Colltech Limited has announced a joint venture with Swang Chai Chuan Limited to develop an ovine nano-collagen production facility in Collie, Western Australia. The partnership, through Ovicoll Pty Ltd, will see both companies initially holding a 50:50 ownership stake.
Swang Chai Chuan will contribute RM5,000,000 (approximately A$1.6 million) to fund the commissioning and initial working capital of the joint venture. Holista will pay 3% per annum on SCC’s initial funding contribution for two years. Holista has an option to increase its stake to 75% within three to five years, based on a pre-agreed valuation.
The joint venture will be managed by Holista, with an equal number of directors from both companies on the board of Ovicoll Pty Ltd. Holista will retain ownership of all intellectual property, while the joint venture will have a license to use the technology, paying an 8% royalty on gross sales, capped at 20% of profit before tax.
This venture aims to commercialize Holista’s collagen technology and expand production capabilities into international markets. The facility will produce nano-collagen products for nutraceutical, food, cosmetic, and biomedical applications. SCC will support market development through its regional network and distribution experience.
No material conditions are precedent to the joint venture agreement, and Holista will provide updates on development milestones and commissioning timelines.
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