Star Combo Pharma (ASX:S66) completes $33.3M placement to Goldenmax

Star Combo Pharma (S66) is in a strong cash position after successfully completing a $33.3 million placement.

Approximately 49 million Star Combo shares have been issued to Goldenmax International Technology at a price of 68 cents per share.

Goldenmax develops, produces and sells copper-coated laminate products, which are used for making printed circuit boards.

Star Combo will use this money to strengthen its balance sheet, and support its strategy of becoming a leading Australia manufacturer and distributor of premium vitamins and nutritional products.

“We are very excited to have Goldenmax invest in our company and bring with that investment a significant sales and distribution network across China, as well as strong process manufacturing and business expertise,” Chairman Richard Allely said.

“The combination of a strong balance sheet and Star Combo’s manufacturing and product development expertise will underpin the company’s strategy to establish itself as a market leader in the vitamin and nutritional products manufacturing sector in Australia,” he added.

As a result of this placement, Goldenmax is now a substantial shareholder of the company, owning 36.1 per cent.

It has also transferred two directors, Mr Jialong Ding and Ms Wei Han, from its board to Star Combo’s board.

Mr Jialong is the Vice President of the pharmaceutical division of Goldenmax, and he has been a former Director, Chairman, CEO, and Senior Executive of several large pharmaceutical companies in China.

Ms Wei has over 30 years experience in business and financial development. She is currently Vice-Chairperson and Executive Director of Goldenmax.

Star Combo has ended the day 6.38 per cent in the green with shares trading for 50 cents each in a $40.67 million market cap.