WORK Medical Technology Group Ltd (NASDAQ:WOK) saw its stock climb 4.5% on Tuesday after announcing a $1 million strategic investment in Neologics Bioscience Inc., a Delaware-based medical technology company specializing in artificial intelligence integration for healthcare applications.
The investment secures WORK Medical a 10% equity stake in Neologics on a post-investment basis, bringing the startup’s total capital reserve to $10 million. The existing shareholder will maintain the remaining 90% ownership.
Under the agreement, WORK Medical will obtain governance rights proportional to its stake, including the ability to nominate board members and a right of first refusal for any future equity offerings.
The funding will help Neologics accelerate its operations, expand its R&D pipeline, grow its market presence, and strengthen its recruitment efforts. The company has agreed to finalize all registration, shareholder filings, and equity certificate issuance within 20 working days of signing the deal.
Shuang Wu, CEO and chairman of WORK Medical, described the investment as “a key step in advancing our strategic focus on innovation and global collaboration in the medical technology field.” He added that the partnership seeks to leverage Neologics’s research strengths alongside WORK Medical’s industry expertise to “unlock synergies and growth potential.”