Collie, Western Australia, May 06: Holista Colltech Limited has announced the execution of a binding Joint Venture (JV) Agreement with Swang Chai Chuan Limited (SCC) to fund, develop, and operate an ovine nano-collagen production facility in Collie, Western Australia.
The JV will operate through Ovicoll Pty Ltd, with an initial ownership structure of 50:50 between Holista and SCC. As part of the agreement, SCC will contribute funding to support commissioning and initial working capital requirements of the facility.
Under the commercial terms, Holista will make payments equivalent to 3% per annum on SCC’s initial funding contribution for a period of two years. The company also retains the option to increase its stake in the JV to 75% between the second and fifth anniversaries of SCC’s investment, based on a pre-agreed valuation framework.
In connection with the agreement, Dr. Rajen Manicka, a substantial shareholder of Holista, has provided a personal guarantee to SCC covering certain financial obligations of the JV. The guarantee is secured against his personal shareholding and does not constitute a liability for the company.
Operations and Governance
Holista will oversee day-to-day operations of the JV, while governance will be managed through a board comprising equal representation from both partners.
Intellectual Property and Commercial Structure
Holista will retain ownership of all existing and newly developed intellectual property, granting the JV a license to utilize the technology. The JV will pay Holista a royalty on gross sales, subject to a cap linked to profitability.
Strategic Significance
The partnership marks a key milestone in the commercialization of Holista’s collagen technology and aligns with its strategy to scale production capabilities and expand into global markets.
The Collie facility is expected to produce high-value nano-collagen for applications across nutraceuticals, food, cosmetics, and biomedical sectors. SCC will support market development efforts by leveraging its regional distribution network and consumer market expertise.
There are no material conditions precedent to the agreement, and further updates on project milestones and commissioning timelines are expected in due course.
This announcement has been approved by the Board of Holista Colltech Limited.
