Broncus Holding Corporation (Broncus-B, 02216) announced on 21 March 2026 that its wholly owned subsidiary, Broncus China Holding, has agreed to acquire an additional 579,866 Series B preferred shares in Valgen Holding Corporation, equal to 3.85% of Valgen’s fully-diluted share capital, for US$55.12 million (HK$428.56 million).

The consideration—identical to the seller’s original purchase cost—will be settled in cash: 10% as a deposit within three business days, 70% at closing, and the remaining 20% within ten business days after the seller completes relevant PRC tax filings. A six-month “most-favoured nation” clause requires Broncus to compensate the seller should Broncus buy Valgen Series B shares elsewhere at a higher price during that period. Closing is conditional on standard regulatory and corporate approvals and must occur within fifteen business days after all conditions are met.

Because Broncus bought Valgen shares in December 2025, the latest purchase is aggregated with that earlier transaction and qualifies as a major transaction under Chapter 14 of the Hong Kong Listing Rules. A shareholder circular is scheduled for dispatch on or before 14 April 2026, and completion remains subject to shareholder approval.

Valgen, a Cayman Islands-incorporated structural-heart device developer, reported sharp operating improvements: revenue rose from zero in 2021 to RMB100.60 million in 2024; the group swung to a RMB45.11 million profit in the nine months ended 30 September 2025, with operating cash inflow of RMB102.80 million. Total assets stood at RMB676.70 million as at 30 September 2025.

Broncus cited multiple strategic synergies—including applying its multi-modal image-fusion navigation and dynamic-impedance ablation technologies to cardiac interventions, shared marketing and supply-chain efficiencies, and broader access to respected healthcare investors—as justification for the premium‐to-book valuation.

Concurrent with the deal, Broncus’s board approved a re-allocation of unutilized IPO proceeds. As at 31 December 2025, HK$794.80 million remained unspent. Of this balance, the budget for mergers and acquisitions has been raised from HK$194.00 million to HK$450.00 million, while allocations for InterVapor, RF-II and other R&D projects were reduced. All remaining funds are now expected to be fully deployed by 2028.

Shareholders and potential investors are advised that the transaction may or may not complete and to exercise caution when dealing in Broncus securities.