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TME Pharma advances its new investment strategy and signs LOI with German resources company
Globenewswireยท 2025-11-05 07:01
Core Insights - TME Pharma has signed a non-binding Letter of Intent (LOI) with a German resource development company (GRDC) to explore collaboration and investment opportunities, marking a step in its investment diversification strategy aimed at building sustainable value and strengthening its financial position [2][10][12] Investment Strategy - Following a strategic review, TME Pharma intends to expand operations by integrating biotechnology expertise with profitable, cash-flow-generating investments to enhance long-term shareholder value and financial resilience while maintaining focus on its lead therapeutic assets, NOX-A12 and E36 [3][20] - The company plans to broaden the scope of its investments to include new business lines managed at the parent company level, seeking shareholder approval at the next Extraordinary General Meeting [4][20] GRDC Overview - GRDC specializes in sustainable resource development and environmental rehabilitation, utilizing advanced technologies and circular economy principles to transform underutilized mining sites into productive operations [5] - The company is finalizing a financing round to acquire machinery for resource extraction, with operations expected to start in early 2026, targeting the recovery of manganese, copper, and gold [6] Collaboration Objectives - TME Pharma aims to diversify its investment strategy into innovative and ESG-oriented industries through the potential partnership with GRDC, which could generate revenue in the short to medium term [8][10] - The transaction structure will be negotiated to minimize cash outflows and risk exposure while capitalizing on GRDC's value-creation potential [9][11] Due Diligence and Future Steps - TME Pharma will initiate due diligence procedures to assess GRDC's projections and underlying asset values, with the proposed investment to be submitted to shareholders for approval upon successful completion [7][10]