Zai Lab (ZLAB) has released an update to notify the public and investors about an entry into a material definitive agreement.
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Zai Lab Limited has secured various debt facilities with Chinese banks to bolster its working capital and enhance strategic flexibility, despite having sufficient capital to fund operations until profitability. The company has established a $100 million standby letter of credit with the Bank of China and entered into a working capital loan agreement for approximately $47.8 million at a favorable interest rate. Additionally, Zai Lab has guaranteed working capital loans for its Shanghai subsidiary with SPD Bank, and its Suzhou subsidiary has negotiated a credit line with Ningbo Bank. These financial maneuvers are part of Zai Lab’s forward-looking strategy to support its growth and commercial ventures.
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For a comprehensive understanding of the announcement, you can read the full document here.
