-- Swang Chai Chuan (HKG:2321) agreed to form a joint venture with Holista Colltech to fund and develop an ovine nano-collagen production facility in Australia, according to a Hong Kong bourse filing on Tuesday.
Swang Chai will invest 5 million yuan for a 50% stake in the Ovicoll Pty Ltd joint venture.
Holista Colltech will be responsible for the day-to-day management of the JV and has agreed to pay 3% per year on Swang Chai's initial investment for two years.
Holista Colltech also has an option to increase its ownership of the joint venture from 50% to 75%.
Ovine nano-collagen products have applications in nutraceutical, food, cosmetic and biomedical sectors.
Swang Chai Chuan shares fell over 5% in pre-market trade Tuesday.