SINGAPORE (Feb 1): Healthcare company Cordlife Group said today it has invested a further $8.4 million in its strategic alliance with CellResearch Corporation.

The investment will be funded entirely by internal resources.

Cordlife first entered into an alliance agreement with CRC in 2010 to provide umbilical cord lining banking service.

Cordlife will subscribe for a Class A Redeemable Convertible Note (RCN) that matures in three years from the issue date with the amount of $4.2 million from CRC. The yielding interest is at a rate of three month SIBOR plus 7% a year payable annually in arrears.

Cordlife will also purchase 4.2 million shares in CRC from the founders for $4.2 million. It may receive additional shares in CRC for $1 each or sell the shares back if a net profit target is not met by end 2018.

CRC has entered into a services and research collaboration agreement with the University of Colorado School of Medicine and ClinImmune Labs in June last year. It plans to embark on US FDA approved trials for the treatment of diabetic wounds using umbilical cord lining stem cells and proceeds go to accelerating clinical development of the advanced wound healing technology.

Cordlife believes this will enhance its UCL banking service in existing markets such as Hong Kong and Singapore.

Cordlife ended lower 0.3% at $1.67 on Monday.