AMDL Signs Letter of Intent to Purchase a China Based Pharmaceutical Distribution Company
May 07 2008 - 9:00AM
PR Newswire (US)
TUSTIN, Calif., May 7 /PRNewswire-FirstCall/ -- AMDL, Inc.
(AMEX:ADL), headquartered in Tustin, California, with operations in
Shenzhen, Jiangxi, and Jilin, China, is a vertically integrated
specialty pharmaceutical company. In combination with its
subsidiary Jade Pharmaceutical Inc. (JPI), the Company engages in
the research, development, manufacture, and marketing of
diagnostic, pharmaceutical, nutritional supplement, and cosmetic
products. AMDL today announced, that a Letter of Intent (LOI) has
been signed between Guangzhou Lazon Pharmacy Co., Ltd. (GLP), a
Hong Kong company that holds sole ownership of two China based
pharmaceutical companies: Jiangxi Shangrao Kangda Pharmacy Co.,
Ltd. (JJB) and Yangbian Yiqiao Biochemistry Pharmacy Co., Ltd.
(YYB) and JPI, the wholly owned subsidiary of AMDL. Based upon
recent meetings in Shenzhen, China it is anticipated that JPI and
GLP with work towards completing the acquisition of GLP by JPI and,
as an interim step, GLP and JPI shall enter into a distribution
agreement for JPI pharmaceutical products. GLP was founded in 2002
and it is a Guangzhou based pharmaceutical distribution and sales
company. GLP currently represents over 400 products from various
manufacturers. GLP currently sells and distributes traditional
Chinese medicines, health foods, medical equipment and generic
pharmaceutical products. GLP had FY2007 gross sales of
approximately 200 million RMB (US$28.55 million), with
approximately a 10% net profit margin and an annual sales growth
rate of approximately 20-30% per year. GLP currently has
approximately 70 in-house sales agents. Geographically, 51% of the
current sales are made to hospitals, clinics and pharmacies in
Guangdong Province followed by 49% of the sales being made in
Fijian, Hebei and Sichuan provinces. As part of the Definitive
Agreement it is anticipated that JPI, JJB and YYB would consolidate
their sales forces under GLP. JPI, JJB and or YYB and GLP shall
immediately begin working on one or more distribution agreements
for the sales and distribution of JJB and or YYB's products by GLP.
Subject to due diligence by JPI and other conditions and upon
completing a Definitive Purchase Agreement, a closing of the
transaction can take place wherein, 100 percent ownership in GLP
will be transferred to JPI. Best efforts will be made by both JPI
and GLP to complete the proposed transaction by August 1, 2008. The
Parties will agree amongst other things to hire and split the costs
(50/50) a mutually agreed to valuation company to perform a
valuation analysis to determine the value of GLP. Based upon that
analysis and respectful negotiations between JPI and GLP, an
acquisition price will be determined. Based upon this acquisition
price, acquisition consideration can be allocated that may include:
cash, the common stock of AMDL and or stock options for AMDL's
common stock. Prior to signing a Definitive Agreement, GLP and JPI
pay for (50/50) and engage the international accounting firm of
Baker Tilly (Hong Kong) to complete a two-year plus stub audit of
GLP to U.S. GAAP accounting standards. Prior to executing a
Definitive Agreement both JPI and GLP will work together to create
a new 2-year business plan and capital budget that will be agreed
to by both Parties. About Jade Pharmaceutical: Jade has access to
the fastest growing pharmaceutical and consumer market in the
world: China. AMDL, through its subsidiaries, Jade currently
manufactures large volume injection fluids, tablets and other
related products, holding licenses for 133 products. It also
manufactures 107 generic, over the counter and supplemental
pharmaceutical products under certified Chinese Good Manufacturing
Practice (CGMP) standards. About AMDL: More information about AMDL
and its products can be obtained at http://www.amdl.com/.
Forward-Looking Statements Statements in this press release may
constitute forward-looking statements and are subject to numerous
risks and uncertainties, including the failure to complete
successfully the development of new or enhanced products, the
Company's future capital needs, the lack of market demand for any
new or enhanced products the Company may develop, any actions by
the Company's partners that may be adverse to the Company, the
success of competitive products, other economic factors affecting
the Company and its markets, and other risks detailed from time to
time in the Company's filings with the Securities and Exchange
Commission. The actual results may differ materially from those
contained in this press release. The Company disclaims any
obligation to update any statements in this press release. Contact:
AMDL, Inc. Mr. Paul Knopick AMDL Investor Relations Direct Line:
949.707.5365 VoiceMail: 714.505.4460 DATASOURCE: AMDL, Inc.
CONTACT: Mr. Paul Knopick, AMDL Investor Relations,
+1-949-707-5365, VoiceMail: +1-714-505-4460 Web site:
http://www.amdl.com/
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