BIMI International Medical Inc. Signs Stock Purchase Agreement to Acquire Chongqing Zhuoda Pharmaceutical Co., Ltd.
September 14 2021 - 8:30AM
BIMI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the
“Company”), a leading healthcare products and services provider in
China, today announced that it entered into a Stock Purchase
Agreement (the “Agreement”) on September 10, 2021, to acquire
Chongqing Zhuoda Pharmaceutical Co., Ltd. (“Zhuoda”), a wholesale
supplier of pharmaceuticals and medical equipment, including over
1,220 pharmaceutical products, thousands of Chinese herbal
medicines and more than 50 types of medical equipment.
Pursuant to the Agreement, BIMI will purchase all the issued and
outstanding equity interests in Zhuoda in consideration of
US$11,617,500 (RMB 75,000,000). At the closing, 2,200,000 shares of
common stock of BIMI valued at RMB 43,560,000, or $3.00 per share
(approximately US$6,600,000) will be issued as partial
consideration for the purchase of Zhuoda. The remainder of the
purchase price in the amount of approximately US$4,800,000 (RMB
31,680,000), is subject to post-closing adjustments based on the
performance of Zhuoda in 2022 and 2023.
Mr. Tiewei Song, CEO and President stated, “We are
encouraged and excited about the planned acquisition of Zhuoda, as
we believe this transaction will be transformative for our Company
and our shareholders. Zhuoda has established long-term
strategic cooperation with 14 local hospitals, which account for
most of the grade A tertiary hospitals in East Chongqing. It will
greatly boost Company’s local market expansion.
“The acquisition of Zhuoda represents a unique opportunity for
BIMI and our shareholders to expand our product coverage, with
BIMI’s commercialization expertise augmenting Zhuoda’s extensive
products pipeline, large medical establishment customer base and
their deep relationship with domestic and international medical
device manufactures such as GE, Philips, LEPU and Landwind Medical.
We are confident that this acquisition will create lasting value
for our customers and will promote the growth of the company in a
sustainable manner” concluded, Mr. Tiewei Song.
About BIMI International Medical
Inc.
BIMI International Medical Inc. was founded in
2006. The Company is now exclusively a healthcare products and
provider, offering a broad range of healthcare products and related
services and operates five private hospitals in China. 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
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.com Phone: +1 571-464-9470 (from
U.S.) +86 13811768559 (from China)
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