Broncus (HKG:2216) unit Broncus China agreed to acquire 157,800 Series B preferred shares in Valgen from Venus Medtech (Hong Kong) for HK$15 million, according to a Monday Hong Kong bourse filing.

Shares of the lung disease treatment firm were up nearly 4% in Tuesday afternoon trading.

​​Each preferred share will automatically be converted into an ordinary share upon the closing of a qualified IPO.

The shares represent 1.05% of the outstanding shares of the target firm on a fully diluted and as converted basis.

The target firm engages mainly in providing systematic solutions for diseases such as mitral regurgitation and tricuspid regurgitation.