LISHUI, China, Nov. 5, 2021 /PRNewswire/ -- Farmmi, Inc.
("Farmmi" or the "Company") (NASDAQ: FAMI) announced that the
Company has agreed to purchase approximately 16% of Shanghai Jiaoda
Onlly Co., Ltd. ("Jiaoda Onlly"), a Shanghai Stock Exchange listed
company under the ticker 600530.SH, from a major shareholder.
Jiaoda Onlly operates elderly care institutions and engages in the
research and development production and sale of health food.
Farmmi, through its subsidiary Zhejiang Yitang Medical Service Co.,
Ltd. ("Yitang Medical"), purchase the shares of Jiaoda Onlly from
China Capital Investment (Group) Co., Ltd. (CCIG) and related
companies for approximately RMB 509
million (approximately US$79.8 million). Following the purchase,
Yitang Medical will be the second largest shareholder of Jiaoda
Onlly, marking Farmmi's entrance into China's medical and health industry.
Jiaoda Onlly (600530.SH) is one of the largest elderly care and
rehabilitation institution listed in China, currently operating 14 nursing and
rehabilitation institutions primarily located in Shanghai, Jiangsu and Zhejiang, with capacity of nearly 4,000 beds.
With revenue reaching approximately RMB 333
million (approximately US$52.1
million) the fiscal year 2020, Jiaoda Onlly is committed to
becoming the largest medical care enterprise in Asia. In addition, Jiaoda Onlly's fast growing
health food business has 31 health food approval numbers and 16
invention patents, covering a full range of products from dietary
supplements and traditional tonics to functional products for heart
protection, hypoglycemic conditions and more.
Farmmi Inc. (NASDAQ: FAMI) is the first Chinese edible fungus
company listed on NASDAQ that specializes in the research,
production, processing, and sales of edible fungi. The Company has
more than 20 years of development history, on the basis of
consolidating and developing the original edible fungus industry
and investing in innovations for the constantly evolving field.
Farmmi's recently announced its expanded business strategy
targeting the broader healthcare industry, with the formation of
several new subsidiaries, including Farmmi (Hangzhou) Health Development Co., Ltd.,
Zhejiang Farmmi Health Medical Technology Co., Ltd., Zhejiang
Yiting Medical Technology Co., Ltd. and Yitang. Farmmi plans to use
Yitang to focus on growth opportunities in the medical and health
fields, including rehabilitation hospitals and nursing homes.
Zhejiang Yiting Medical Technology Co., Ltd. will focus on
opportunities in the elderly care industry, including the
acquisition, investment and operation of nursing homes.
Ms. Yefang Zhang, Farmmi's
Chairwoman and CEO, commented, "This is the largest investment in
our 20-year history. In the process of conducting our due
diligence, we have gotten to know the Jiaoda Onlly team and are
excited about the business and its multi-year growth opportunities.
As one of the largest elderly care and rehabilitation institution
listed in China, Jiaoda Onlly will
serve as the cornerstone of our recently announced expansion into
the broader healthcare industry, our overall business
diversification and our aggressive drive to increase operating cash
flow and investor value. The healthcare industry is undergoing a
period of dramatic growth led by the aging population and the
increased need for full-time care, which was further amplified by
the COVID-19 pandemic. With an increasing need for care and an even
higher premium placed on quality of life facilitators, we expect
both our investment in Jiaodo Onlly and our broader expansion will
create significant value for Farmmi and our shareholders over the
coming years."
About Farmmi, Inc.
Farmmi Inc. (NASDAQ: FAMI) was established in 1998,
formerly known as Zhejiang Forasen Food Co., Ltd., which is an
agricultural e-commerce technology enterprise. Headquartered in
Lishui, Zhejiang, is an
agricultural products supplier, processor and retailer of Shiitake
mushrooms, Mu Er mushrooms, other edible fungi and other
agricultural products. For further information about the Company,
please visit: http://ir.farmmi.com.cn/.
About Shanghai Jiaoda Onlly Co., Ltd.
Shanghai Jiaoda Onlly Co., Ltd. registered in Shanghai
Administration for Industry and Commerce on December 24, 1997, it is a joint stock company
established by nine promoters and shareholders on the basis of the
original Shanghai Jiaotong University Onlly Biological Products
Co., Ltd. Promoters includes Shanghai Jiaotong University, Shanghai
Dazhong Taxi Co., Ltd., Shanghai Rongbei Industry and Trade
Industrial Corporation, Shanghai Xinluda Commercial (Group) Co.,
Ltd., Shanghai International Co., Ltd., etc.
After more than 20 years of effort, the company has now become a
leader in China's health food
industry. In July 2001, the company
was successfully listed on the Shanghai Stock Exchange (stock code:
600530), becoming the first listed company in China's health food industry.
Forward-Looking Statements
This press release contains forwarding-looking statement within
information about Farmmi Inc.'s views on its future expectations,
plans and prospects. We remind you not to rely too much on these
forward-looking statements. Due to various of factors, actual
results may differ materially from the anticipated results,
including but not limited to its ability to raise additional funds,
maintain and develop business, variability of business performance,
ability to maintain and enhance its brand, development and launch
of new products and services, completion of the Jiaoda Onlly
purchase, successful integration of acquired companies,
technologies and assets into its product and service portfolio,
marketing and other business development initiatives, industry
competition, general government regulation, economic conditions,
the impact of the novel coronavirus pneumonia, dependence on key
personnel, attracting, hiring and retaining personnel with the
skills and experience required to meet customer requirements, and
the ability to protect their intellectual property rights. Farmmi
Inc. encourages you to review other factors that may affect its
future results in its registration statement and other documents
submitted to the U.S. Securities and Exchange Commission. The
forward-looking statements in this press release are based on
current expectations, our company does not undertake the obligation
to update these forward-looking statements.
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SOURCE Farmmi, Inc.