BIMI International Medical Inc. Signs Stock Purchase Agreement With Bengbu Mali OB-GYN Hospital
December 21 2021 - 8:30AM
BIMI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the
“Company”) today announced that it has signed a stock purchase
agreement with Bengbu Mali OB-GYN Hospital (the “Mali Hospital”),
also known as Bengbu Mali Maternity Hospital.
The aggregate purchase price (the “Purchase Price”) for the Mali
Hospital is US$16,750,000. The consideration consists of cash in
the amount of US$2,800,000 and 3,000,000 newly-issued shares of
common stock of BIMI (the “Parent Shares”), with an agreed upon
value by the parties of US$9,000,000 at US$3.00 per share, is to be
paid at the Closing.
The remainder of the purchase price of 1,650,000 shares of
Common Stock valued at US$4,950,000, or $3.00 per share (the
“Earnout Amount”), is subject to post-closing adjustments based on
the performance of Mali Hospital in 2022 and 2023. If the net
profit of Mali Hospital in 2022 equals or exceeds the net profit
target, which is approximately US $770,000 (RMB 5,000,000),
approximately 50% of the Earnout Amount will be paid to the sellers
or their designees by the issuance of 800,000 shares of Common
Stock. If the net profit target is not met, a reduced number of
shares of Common Stock will be issuable based on the ratio of the
actual net profit to the net profit target. The sellers or
their designees will receive about 50% (or a smaller portion) of
the Earnout Amount (850,000 shares of Common Stock), subject to
Mali Hospital reaching a similar performance target in
2023.
“The acquisition of the Mali Hospital enhances our hospital
chain for obstetrics and gynecology. We plan to shortly open new
departments in this hospital, including minimally invasive plastic
surgery, Ophthalmology and Rehabilitation. We predict these new
departments could account for 45% of hospital’s revenue in two
years,” said Mr. Tiewei Song, Chief Executive Officer and President
of BIMI International Medical Inc.
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 StatementCertain 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.
IR Contact:Dragon Gate Investment Partners LLC Tel:
+1(646)-801-2803 Email: BIMI@dgipl.com
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