ECMOHO Limited Invests in Developer of Chinese Herbal Medicine Based Health and Wellness Products
August 03 2020 - 11:40AM
ECMOHO Limited ("ECMOHO" or the "Company"; Nasdaq: MOHO) announced
today that it has entered into an investment agreement with Anze
Premium Health and Beauty Pte. Ltd. (“Anze”), a company involved in
the research and development of Chinese herbal medicine-based
health and wellness products. The Company has committed to
paying Anze up to US$30 million, comprising of up to US$15 million
for an equity interest in Anze and up to US$15 million for zero
coupon convertible notes issued by Anze.
The consideration to be paid by the Company will
be payable over three installments, each payment being contingent
upon the satisfaction of certain performance conditions by Anze, as
set out in the transaction documents. Upon the completion of
the third and final equity installment, the Company is expected to
cumulatively own 29.7% of Anze’s equity capital. The
convertible notes shall be repaid in installments starting in the
1st quarter of 2021 and ending in 2023. The Company has the
right to convert the convertible notes into equity at predetermined
valuations starting in 2021. If the Company exercises its
conversion right, the notes can be maximally converted into a 20%
interest in the equity capital of Anze, as set out in the
transaction documents.
Commenting on the investment, the Company’s CEO,
Zoe Wang, said,
“We believe that
Chinese herbal medicine based health and wellness products are
experiencing increasing demand from Chinese consumers as a result
of a number of factors, including an aging population, a growing
middle class, awareness of the importance of disease prevention,
particularly as a result of the ongoing COVID-19 pandemic around
the world, and supportive government policies in China.
According to the Forward Industry Research Institute, it is
estimated that the size of the herbal medicine-based wellness
products market in China will exceed RMB 149 billion (approximately
US$21 billion) annually by the year 2024.
We are continually
looking for new opportunities to strengthen our product portfolio
in this significant and growing segment of the health and wellness
industry. Based on our due diligence, Anze has done extensive
research in the formulation of Chinese herbal medicine-based health
and wellness products. We believe Anze’s strong research and
development capabilities complement well our expertise in supply
chain logistics, consumer analytics, brand management, and brand
marketing and promotion. Together we expect to capitalize on
the favorable trend in the herbal medicine-based health and
wellness market.”
Safe Harbor Statements
This news release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates,” “target,” “going forward,” “outlook” and
similar statements. Such statements are based upon management's
current expectations and current market and operating conditions,
and relate to events that involve known or unknown risks,
uncertainties and other factors, such as the projected growth of
the herbal medicine-based health and wellness products industry in
China, consumers’ acceptance of health and wellness products
developed by Anze, Anze’s ability to repay its convertible note,
and whether the investment in Anze can be profitable, all of which
are difficult to predict and many of which are beyond the Company's
control, which may cause the Company's actual results, performance
or achievements to differ materially from those in the
forward-looking statements. Further information regarding
some of these and other risks, uncertainties or factors is included
in the Company's filings with the U.S. Securities and Exchange
Commission. The Company does not undertake any obligation to
update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
applicable law.
About ECMOHO Limited
ECMOHO is a leading integrated solution provider
in the non-medical health and wellness market in China. The Company
acts as the bridge between brand owners and Chinese consumers by
marketing and distributing health supplements and food, mother and
child care products, personal care products, household healthcare
equipment and other health and wellness products. Through
over eight years of operation, ECMOHO has built an ecosystem where
Chinese consumers are provided with customized health and wellness
solutions that include quality products and trustworthy
content.
For more information, please visit
http://ir.ecmoho.com/.
For investor and media inquiries, please contact:
ECMOHO Ltd. Investor Relations Email:
ir@ecmoho.com
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