WORK Medical Technology Group LTD Announces US$1 Million Equity Investment in Neologics Bioscience

Rhea-AI Summary

WORK Medical (NASDAQ: WOK) agreed to invest US$1 million in Neologics Bioscience to acquire a 10% equity interest via newly issued shares, on a post-investment basis. The transaction raises Neologics's total capital reserve to US$10 million and leaves the existing shareholder with a 90% stake.

WORK Medical gains governance rights tied to its 10% holding, a right of first refusal on future equity offers, and expects Neologics to complete registration and issue an equity certificate within 20 working days. Proceeds will support operations, R&D, market expansion, and hiring.

Positive

• US$1 million investment for a 10% equity stake
• Post-money capital reserve increased to US$10 million
• Includes right of first refusal on future equity
• Governance rights to nominate board members

Negative

• 10% stake is a minority holding, limiting control
• No revenue or ROI targets disclosed for the investment

Hangzhou, China, Oct. 21, 2025 (GLOBE NEWSWIRE) -- WORK Medical Technology Group LTD (Nasdaq: WOK) (“WORK Medical” or the “Company”), a supplier of medical devices in China, through its subsidiary, Work (Hangzhou) Medical Treatment Equipment Co., Ltd. and its subsidiaries in China, today announced that it has entered into an investment agreement (the “Investment Agreement”) with Neologics Bioscience Inc. (“Neologics”), a Delaware-based medical technology company specializing in research and development of medical technologies, with a focus on the integration of artificial intelligence and medicine (the “R&D”), to invest US$1 million in cash to acquire a 10% equity interest in Neologics. Pursuant to the Investment Agreement, WORK Medical has agreed to subscribe for newly issued shares of Neologics, representing a 10% ownership interest on a post-investment basis. Following the investment, Neologics’s total capital reserve will increase to US$10 million, with its existing shareholder retaining a 90% ownership interest. According to the Investment Agreement, WORK Medical has corporate governance rights commensurate with its 10% equity interest in Neologics, including, shareholder rights with respect to nominating board members. Additionally, WORK Medical has a right of first refusal to purchase any equity interests offered by Neologics, on terms no less favorable than those offered to third parties.

The investment proceeds are expected to be primarily used to support Neologics’s operations, R&D, market expansion, talent acquisition, and other legitimate business purposes. Neologics has agreed to complete all necessary corporate registration, shareholder filings, and the issuance of an equity certificate within 20 working days following the execution of the Investment Agreement.

Mr. Shuang Wu, chief executive officer and chairman of the board of directors of WORK Medical, commented: “We are excited to partner with Neologics, which marks a key step in advancing our strategic focus on innovation and global collaboration in the medical technology field. By combining Neologics’s R&D capabilities with WORK Medical’s industry experience and operational strengths, we expect this partnership to unlock synergies and growth potential. Together, we aim to foster technological innovation, drive mutual advancement, and deliver sustainable value to both companies and our stakeholders.”

About WORK Medical Technology Group LTD

WORK Medical Technology Group LTD, through its subsidiary, Work (Hangzhou) Medical Treatment Equipment Co., Ltd. and its subsidiaries in China, is a supplier of medical devices that develops and manufactures Class I and II medical devices and sells Class I and II disposable medical devices through operating subsidiaries in China. The Company has a diverse product portfolio comprising 21 products, including customized and multifunctional masks and other medical consumables. All the products have been sold in 34 provincial-level administrative regions in China, with 15 of them sold in more than 30 countries worldwide. The Company has received a number of quality-related manufacturing designations and has registered 17 products with the U.S. Food and Drug Administration allowing their products to enter the U.S. market. For more information, please visit the Company’s website: https://www.workmedtech.com/corporate.

Forward-Looking Statements

This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will,” and variations of these words or similar expressions that are intended to identify forward-looking statements. Any such statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Any forward-looking statements in this press release are based on the Company’s current expectations, estimates, and projections only as of the date of this release and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results set forth in the Company’s annual report on Form 20-F and other documents filed by the Company with the U.S. Securities and Exchange Commission. The Company explicitly disclaims any obligation to update any forward-looking statements except to the extent required by law.

For more information, please contact:

WORK Medical Technology Group LTD
Investor Relations Department
Email: ir@workmedtech.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What did WORK Medical (WOK) announce on October 21, 2025?

WORK Medical announced a US$1 million cash investment to acquire a 10% equity interest in Neologics Bioscience.

How much ownership will WORK Medical hold in Neologics after the deal?

WORK Medical will hold 10% ownership on a post-investment basis, with the existing shareholder retaining 90%.

What rights does WORK Medical gain from the Neologics investment?

WORK Medical gains governance rights commensurate with 10% ownership, including board nomination and a right of first refusal.

What will Neologics use the US$1 million investment for?

Proceeds are expected to support operations, R&D, market expansion, and talent acquisition.

When will Neologics complete registration and issue the equity certificate?

Neologics agreed to complete registration and issue an equity certificate within 20 working days after the Investment Agreement.

How does the transaction affect Neologics's capitalization?

Following the investment, Neologics's total capital reserve will be US$10 million.