ABVC BioPharma, Inc. (NASDAQ: ABVC) announced on June 23, 2026, its plan to spin off its wholly owned subsidiary, BioKey (Cayman), Inc., and distribute approximately 15% of BioKey's outstanding Ordinary Shares as a pro rata dividend to ABVC shareholders of record as of July 24, 2026. The distribution is expected to be effective on August 3, 2026, subject to the effectiveness of the Registration Statement on Form 10 by June 25, 2026.
BioKey operates as a nutraceutical and functional-supplement research, development, and manufacturing company, offering a fully integrated Contract Research Organization (CRO) and Contract Development and Manufacturing Organization (CDMO) platform through its California subsidiary, BioKey, Inc. Services include contract research, formulation development, cGMP manufacturing, regulatory documentation support, and commercial supply to partners across Asia and North America. BioKey also plans to integrate artificial intelligence technology into its services in the future.
ABVC will distribute approximately 4,500,000 Ordinary Shares of BioKey, representing about 15% of BioKey's issued and outstanding shares. No shareholder action is required, and no consideration is needed to receive the dividend. The distribution will be made in book-entry form through VStock Transfer, LLC. Currently, there is no public trading market for BioKey shares, but BioKey intends to apply for quotation on the OTC Markets. Until then, holders cannot sell or transfer shares in the public market. ABVC common stock will continue to trade on Nasdaq under the symbol "ABVC."
ABVC CEO Dr. Uttam Patil 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." The spin-off represents a milestone in ABVC's strategy to unlock value from its subsidiaries and technology platforms, providing shareholders direct participation in BioKey's future. The company continues to evaluate opportunities across its biotechnology, AI, healthcare, and commercial services portfolio for additional value-enhancing transactions.
ABVC BioPharma is a clinical-stage biopharmaceutical company with a pipeline of six drugs and one medical device (ABV-1701/Vitargus®), utilizing in-licensed technology from research institutions including Stanford University, UC San Francisco, and Cedars-Sinai Medical Center. BioKey, Inc., the California subsidiary, holds four FDA-approved Abbreviated New Drug Applications (ANDAs) and operates a cGMP-certified facility in Fremont, California. Following the distribution, BioKey intends to pursue independent growth, strategic acquisitions, and technology partnerships.
Forward-looking statements in this press release involve risks and uncertainties. Detailed information is available in ABVC's filings with the SEC, including the Form 10 Registration Statement for the spin-off, accessible at http://www.sec.gov. The company assumes no obligation to update forward-looking statements.
