BOQI International Medical Inc. Enters into SPA to Acquire Three Hospitals
April 13 2021 - 8:30AM
BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the
“Company”), a leading healthcare products and services provider in
China, today announced the signing of a stock purchase agreement
(the “SPA”) with two individuals ( the “Sellers”) on April 09,
2021 to acquire three private hospitals in China,
namely Yunnan Yuxi Minkang Hospital, Wuzhou Qiangsheng
Hospital and Suzhou Eurasia Hospital (the “Hospitals”).
Pursuant to the SPA, BIMI will purchase the Hospitals for an
aggregate consideration of RMB 162,000,000 (approximately
$24,923,077). Partial consideration for the purchase will be paid
at the scheduled closing in late April 2021 through a combination
of cash in the amount of RMB 20,000,000 (approximately
US$3,076,923) and 4,000,000 shares of common stock of the Company,
the value of which was agreed by BIMI and the Sellers to be RMB
78,000,000 (approximately $12,000,000), subject to necessary
regulatory approvals.
The remaining purchase price of RMB 64,000,000
(approximately $9,846,153) (the “Earnout Amount”) is subject to
post-closing adjustments based on the performance of the Hospitals
in 2021 and 2022. Specifically 50% of the Earnout Amount will be
payable to the Sellers if the aggregate net profit of the Hospitals
in 2021 equals or exceeds a net profit target of RMB 10,000,000
(approximately $1,538,461) prorated based on the closing date of
the transaction. Should the Hospitals fail to meet the performance
target a reduced Earnout Amount will be payable based on the ratio
of the actual aggregate net profit to the net profit target. The
Sellers will be entitled to receive 50%, or a smaller portion, of
the Earnout Amount subject to the Hospitals reaching similar target
in 2022.
Mr Tiewei Song, Chief Executive Officer and
President of the Company, commented: “Following previous
acquisitions of specialty hospitals, we are delighted to be able to
continue accelerating our online-to-offline strategy through
acquisition of these three private hospitals as we aim to establish
a nationwide obstetrics and gynecology hospital chain. The
acquisition should drive great synergies in helping BIMI engage
more closely with consumer demand to provide affordable and
accessible healthcare products and services in the OB/GYN area
as well as in Chinese traditional medicine-related
specialties.”
About Yunnan Yuxi Minkang
Hospital
Yunnan Yuxi Minkang Hospital is located in the
southwest region of China and has 120 hospital beds and 118
employees, including 28 doctors, 55 nurses, 12 other medical staff
and 23 non-medical staff, and is a general hospital locally known
for its OB/GYN and Chinese traditional medicine
specialties.
About Wuzhou Qiangsheng
Hospital
Wuzhou Qiangsheng Hospital Qiangsheng is
located in in the southeast region of China has 20 hospital beds
and 68 employees, including 10 doctors, 26 nurses, 14 other medical
staff and 18 non-medical staff, and is a general hospital locally
known for its OB/GYN and Chinese traditional medicine
specialties.
About Suzhou Eurasia Hospital
Suzhou Eurasia Hospital is located in the central
region of China and has 30 hospital beds and 42 employees,
including 11 doctors, 12 nurses, 4 other medical staff and 15
non-medical staff.
About BOQI International Medical
Inc.
BOQI International Medical Inc. was founded in
2006. In February 2019, the Board of Directors of the Company
determined to focus on the healthcare industry. The Company is now
exclusively a healthcare products and provider, offering a
broad range of healthcare products and related services and
operates two private hospitals. For more information, please visit
www.usbimi.com.
Safe Harbor Statement
Certain matters discussed in this news release
are forward-looking statements that involve a number of risks and
uncertainties including, but not limited to, the Company’s ability
to achieve profitable operations, its ability to continue to
operate as a going concern, its ability to continue to meet NASDAQ
continued listing requirements, the effects of the spread of the
Coronavirus (COVID-19), the demand for the Company’s products and
services in the People’s Republic of China, general economic
conditions and other risk factors detailed in the Company’s annual
report and other filings with the United States Securities and
Exchange Commission.
Investor Relations Contact:Janice Wang EverGreen
Consulting Inc. Email: IR@changqingconsulting.comPhone: +1
571-464-9470 (from
U.S.)
+86 13811768559 (from China)
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