XIANYANG, China, Sept. 22, 2016 /PRNewswire/ -- Biostar
Pharmaceuticals, Inc. (BSPM) ("Biostar" or "the Company"), a
PRC-based manufacturer of pharmaceutical and health supplement
products, and Xianyang Yongsheng Health Products Co., Ltd., a
privately held PRC-based health product manufacturer located in
Xianyang, China ("Xianyang
Yongsheng"), announced today that they have entered into a
non-binding Letter of Intent under which Biostar intends to acquire
100% of equity interest in Xianyang Yongsheng in exchange for (i) a
cash payment, the amount of which is to be determined following
completion of the due diligence review of the target, and (ii)
issuance of shares of Biostar's restricted common stock, subject to
regulatory limitations. The contemplated acquisition is subject to
completion of due diligence review, customary definitive
documentation and requisite corporate and regulatory approvals. The
final terms of the proposed acquisition will be available upon the
execution of the definitive documents. The companies seek to
complete this transaction in the second half of 2016.
Xianyang Yongsheng has three production lines, including health
"Yuye" wine (a popular brand in the PRC market), tea and capsules,
and maintains a 24-acre Chinese herbal medicine ecological
park.
Mr. Wang Ronghua, the Chairman of Biostar, commented, "We have
been following the developments of the health industry and it
appears that the consumer interest for health products based upon
the principles of the traditional Chinese medicine have been
increasing in recent years. This contemplated acquisition is aimed
at increasing the Company's R&D development and productions
capabilities as well as at improving the profitability of the
Company's current product line."
Safe Harbor Relating to the Forward-Looking
Statements
Certain statements in this release concerning our future growth
prospects are forward-looking statements, within the meaning of
Section 27A of the U.S. Securities Act of 1933, as amended, and
Section 21E of the U.S. Securities Exchange Act of 1934, as
amended, which involve a number of risks and uncertainties that
could cause actual results to differ materially from those in such
forward-looking statements. The company uses words and phrases such
as "guidance," "forecasted," "projects," "is expected," "remain
confident," "will" and similar expressions to identify
forward-looking statements in this press release, including
forward-looking statements. Undue reliance should not be placed on
forward-looking information. Forward-looking information is based
on current expectations, estimates and projections that involve a
number of risks, which could cause actual results to vary and in
some instances to differ materially from those anticipated by
Biostar and described in the forward-looking information contained
in this news release. The risks and uncertainties relating to these
statements include, but are not limited to, risks and uncertainties
regarding the possibility that the companies may be unable to
obtain requisite approvals, satisfactorily complete due diligence
reviews, or satisfy the other conditions to closing; that problems
may arise in the integration of the businesses of the two
companies; that the acquisition may involve unexpected costs; the
risks of the health product industry in the PRC; the uncertainty of
estimates and projections relating to future production, costs and
expenses; potential delays or changes in plans with respect to
development projects or capital expenditures; inability of
management to execute its plans to meet its goals; the Company's
ability to complete the certification renewal process in the time
frame currently anticipated, its ability to sustain its sales
effort going forward, its ability promptly and effectively to
return to the normal production levels, its ability to retain
existing and retain new customers for its products, its ability to
achieve the projected sales through the efforts of the call center,
to complete the contemplated clinical trials and capitalize on such
opportunities, the Company's ability to recover its sales and
revenue following the repair and maintenance for GMP certification
renewal, the state of consumer confidence and market demand or the
Company's products, success of our investments, risks and
uncertainties regarding fluctuations in earnings, our ability to
sustain our previous levels of profitability including on account
of our ability to manage growth, intense competition, wage
increases in China, our ability to
attract and retain highly skilled professionals, time and cost
overruns on fixed-price, fixed-time frame contracts, client
concentration, our ability to successfully complete and integrate
potential acquisitions, withdrawal of governmental fiscal
incentives, political instability and regional conflicts and legal
restrictions on raising capital or acquiring companies outside
China. Additional risks that could
affect our future operating results are more fully described in our
United States Securities and Exchange Commission filings including
our most recent Annual Report on Form 10-K for the year ended
December 31, 2015, and other
subsequent filings. These filings are available at www.sec.gov. We
may, from time to time, make additional written and oral
forward-looking statements, including statements contained in our
filings with the Securities and Exchange Commission and our reports
to shareholders. We do not undertake to update any forward-looking
statements that may be made from time to time by or on our
behalf.
Investor Relations Contact
Please send questions or comments to:
Biostar Pharmaceuticals, Inc.
Investor Relations Coordinator
+86-29-3368-6638
office@aoxing-group.com
http://www.biostarpharmaceuticals.com
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SOURCE Biostar Pharmaceuticals, Inc.