ABVC BioPharma, Inc. (NASDAQ: ABVC) announced on June 23, 2026, a planned spin-off of its wholly owned subsidiary BioKey (Cayman), Inc. through a dividend distribution of BioKey shares to ABVC shareholders. The move is designed to unlock the value of the subsidiary and provide shareholders with direct exposure to BioKey's operations as a nutraceutical and functional-supplement research, development, and manufacturing company.
Subject to regulatory steps, including the effectiveness of a Registration Statement on Form 10 by June 25, 2026, ABVC intends to distribute approximately 4.5 million ordinary shares of BioKey, representing about 15% of BioKey's outstanding shares, as a pro rata dividend. Shareholders of record as of the close of business on July 24, 2026, will be eligible, and the distribution is expected to be effective on August 3, 2026. No shareholder action is required, and shares will be issued in book-entry form through VStock Transfer, LLC.
BioKey operates as a fully integrated Contract Research and Development and Manufacturing Organization (CRDMO) through its California subsidiary, BioKey, Inc. It offers contract research services for preclinical and clinical trials, drug formulation, cGMP manufacturing, and regulatory support. BioKey holds four FDA-approved Abbreviated New Drug Applications (ANDAs) and operates a cGMP-certified facility in Fremont, California. The company also plans to integrate artificial intelligence into its services in the future.
Following the spin-off, BioKey intends to seek quotation on the OTC Markets, though no public trading market currently exists. ABVC's common stock will continue trading on Nasdaq under the symbol ABVC. Dr. Uttam Patil, ABVC's CEO, stated, 'We believe the BioKey transaction provides an opportunity to highlight the underlying value of our businesses while maintaining our commitment to long-term shareholder value creation.'
This spin-off is part of ABVC's broader strategy to unlock value from its subsidiaries and technology platforms. ABVC is a clinical-stage biopharmaceutical company with a pipeline of six drugs and one medical device, Vitargus®, developed through collaborations with research institutions including Stanford University and the University of California, San Francisco. The company continues to evaluate opportunities across biotechnology, AI, healthcare, and commercial services to generate additional value-enhancing transactions for shareholders.
The information statement accompanying the Form 10 filing with the SEC provides further details. Risks associated with forward-looking statements are outlined in ABVC's filings with the SEC, available at http://www.sec.gov.
