NKMax, a biotechnology company, has announced a significant development in its partnership with China's Shoukang Group. The two companies have signed a letter of commitment (LOC), outlining Shoukang Group's investment of $50 million (65.3 billion won) through third-party allotment.

This investment will grant Shoukang Group about a 10 percent stake in NKMax, making it the second largest shareholder after NKMax founder and President Park Sang-woo, who currently holds a 13.66 percent stake.

The agreement between NKMax and Shoukang Group opens doors for the distribution of various products, including NKMax's natural killer (NK) cell therapy, immune diagnostic kits (NK View Kit), and health functional foods, to the global market.

Shoukang Group boasts an extensive global sales and distribution network in China, the United States, Europe, and Asia, along with years of experience and data in the medical and health services sector. Moreover, the group has formed a partnership with Jingdong, China's top e-commerce company, to jointly sell a wide range of health functional foods and medical supplies.

“Following the signing of the LOC with Shoukang Group, the company is in the process of signing the main contract,” an NKMax official said. “Orders have already been placed for health functional products such as NK365 in China.“

Thanks to the investment news, the share of the company saw a slight increase on Friday.

As of market close on Friday, the company’s shares stood at 16,170 won, up 2.93 percent from the previous trading day.

Meanwhile, NKMax is also seeking to list NKGen Biotech, its U.S. subsidiary, on the U.S. stock market.

Graf Acquisition Corp. IV, the special purpose acquisition company (SPAC) that will merge with NKGen Biotech, recently filed an S-4 registration statement with the U.S. Securities and Exchange Commission (SEC) on May 16.

S-4 is a form that the SEC requires companies to file to publicly offer new securities pursuant to a merger or acquisition.