Correction: BOQI International Medical Enters into Material Definitive Agreement to Acquire Chongqing Guanzan Technology
February 04 2020 - 2:24PM
In a release issued under the same headline on Monday, February 3,
2020 by BOQI International Medical Inc. (NASDAQ: BIMI), in the
third paragraph, the Cash Consideration to be paid should have been
RMB 80,000,000 (currently approximately $11,428,571), not RMB
800,000,000. The corrected release follows:
BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the
“Company”) today announced that it has entered into a stock
purchase agreement (the “Agreement”) to acquire Chongqing Guanzan
Technology Co., Ltd., (“Chongqing Guanzan”) through its
wholly-owned subsidiary Beijing Xin Rong Xin Industrial Development
Co., Ltd. (“Buyer”)
Chongqing Guanzan is a Chinese medical distributor with
distribution channels covering over 4,000 pharmacies, over 4,000
clinics, 50 hospitals and 130 pharmaceutical companies nationwide.
Chongqing Guanzan also has about ten world-leading medical device
suppliers such as Stryker, GE, Siemens, Philips and Olympus.
Pursuant to the Agreement, the Buyer will purchase all the
issued and outstanding shares (the “Shares”) of Chongqing Guanzan.
The aggregate purchase price for the Shares is RMB 100,000,000
(currently approximately $14,285,714), to be paid in 950,000 shares
of common stock of the Company (the “Stock Consideration”) and RMB
80,000,000 in cash (the “Cash Consideration”). The Stock
Consideration will be paid at closing and the Cash Consideration,
which is subject to post-closing adjustments based on the
performance of Chongqing Guanzan in 2020 and 2021, will be paid
pursuant to a post-closing payment schedule. The closing of the
agreement is expected to be on or about April 20, 2020,
subject to necessary regulatory approvals.
“By joining BOQI International Medical, Chongqing Guanzan and
our employees will benefit from its supply chain management, as
well as the greater resources of a larger, public company,” said
Xiaoping Wang, Chief Executive Officer of Chongqing Guanzan.
“Importantly, we will maintain our continued commitment to
outstanding product quality and strong relationships with suppliers
and customers."
“This is a milestone acquisition which substantially accelerates
our pharmacy expansion and member growth in Southwest China,” said
Mr. Tiewei Song, Chief Executive Officer and President of BOQI
International Medical Inc. “Southwest China has about 200 million
people and increasing market demand, which is a key area of our
expansion strategy. The acquisition enhances our market position in
Southwest China by bringing vital distribution channels, a
best-in-industry management team, and local media influence. By
consolidating new distribution channels, we can increase
distribution channel efficiency and ensure supply during the
current coronavirus outbreak. Based on our extensive engagement
with Chongqing Guanzan over the past several months, we are
confident that Chongqing Guanzan's support will enable BOQI
International Medical to execute on its strategy and next phase of
growth.”
About BOQI International Medical Inc.
BOQI International Medical Inc. (formerly known as NF Energy
Saving Corporation) (NASDAQ: BIMI) was founded in 2006. In February
2019, the Board of Directors of the company was reorganized
following efforts led by Mr. Yongquan Bi, the company’s new
Chairman, with a renewed focus on the health industry. The company
is now transforming from a provider of integrated energy
conservation solutions utilizing energy-saving equipment, technical
services and energy management re-engineering project operations to
a medical and health service provider. BOQI International Medical
Inc. offers a broad range of consumer-directed health products and
related services, including medical, pharmacy and behavioral health
plans, chronic disease management services, and health information
technology products and services. BOQI International Medical Inc.
is community-based and locally focused, engaging consumers with
more affordable, accessible, simple and seamless care they need
when and where they need it.
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IR Contact:Dragon Gate Investment Partners
LLCTel: +1(646)-801-2803Email: BIMI@dgipl.com
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