Holista Colltech Limited has entered into a binding joint venture agreement with Swang Chai Chuan Limited to establish and operate an ovine nano-collagen manufacturing facility in Collie, Western Australia. The project will be carried out through Ovicoll Pty Ltd, which will initially be owned equally by both parties under a 50:50 structure. Under the agreement, SCC will provide RM5,000,000, equivalent to about A$1.6 million, to support commissioning activities and initial working capital requirements for the venture. Holista will make payments equivalent to 3% annually on SCC’s initial funding contribution over a two-year period. The arrangement marks a major step in the commercialization of the company’s collagen technology and strengthens its international expansion strategy for high-value applications tied to Collagen Production.
Holista will oversee daily management and operational responsibilities of the venture, while the board of Ovicoll Pty Ltd will consist of an equal number of directors appointed by both companies. The agreement also gives Holista the contractual right to raise its ownership stake in the joint venture to 75% between the second and fifth anniversaries of SCC’s initial investment, based on a pre-agreed valuation mechanism. In addition, Dr. Rajen Manicka, a substantial shareholder of Holista, has provided a personal guarantee in favour of SCC covering certain financial obligations of the venture. The guarantee is backed by shares he personally holds in the company and does not create an obligation for Holista itself.
The agreement further states that Holista will retain ownership of all existing and future intellectual property connected to the technology, while the joint venture will receive a licence to use it for operational purposes. Ovicoll Pty Ltd will also pay Holista a royalty equal to 8% of gross sales, capped at 20% of profit before tax. The Collie facility is expected to support the manufacture of nano-collagen products for nutraceutical, food, cosmetic and biomedical sectors, while SCC will contribute through its distribution experience and regional network to accelerate market development tied to Collagen Production.
