SHENZHEN, China, July 8, 2011 /PRNewswire-Asia/ -- Global Pharm
Holdings Group, Inc. (OTCBB: GPHG) ("Global Pharm" or the
"Company"), a China based growing
vertically integrated pharmaceutical company engaged in
pharmaceutical-related products distribution and Traditional
Chinese Medicine ("TCM") herbs cultivation through its seven
subsidiaries in Anhui,
Jilin and Shandong provinces, today announced that, on
July 5, 2011, it completed the
acquisition of 100% equity interests of a TCM herbal pieces
processing plant: Bozhou Xinghe Pharmaceutical Co., Ltd. ("Bozhou
Xinghe"). With the completion of this acquisition, Bozhou Xinghe
becomes a wholly owned subsidiary of Shandong Global Pharm Co.,
Ltd. ("SD Global Pharm"), a wholly owned subsidiary of the Company.
Bozhou Xinghe is a Good Manufacturing Practice (GMP) certified, TCM
herbal pieces processing manufacturer located in Bozhou City, the
largest TCM herbs trading market in the world.
"We are very excited to welcome Bozhou Xinghe and be afforded
the opportunity to add the TCM herbal processing business segment
into our integrated value chain," stated Mr. Yunlu Yin, Chief Executive Officer of Global
Pharm. "This acquisition represents a direct complement to our TCM
plantation business in Bozhou and Jinan city by adding up an indispensable
production capacity, so that our cultivated raw herbs can be
processed directly at our own plant. In addition, this facility
offers us a production platform to produce TCM pharmaceutical
products in the near future. This direct-processing with our
stringent quality control will further guarantee our product
quality, which will reward us a premium price in the market. The
new plant will also allow us to customize some herbal pieces
products upon distribution customers' request, therefore, expanding
our distributed product portfolio. We believe we will offer more
quality products for our rapid growing sales channels."
On July 5, 2011, the Company
obtained the new business license for Bozhou Xinghe, with
registered capital of RMB 20 million
(approximately USD$3.1 million).
Under the terms of this acquisition, the Company will pay a total
consideration of up to RMB 30 million
(approximately USD$4.6 million) in
cash to the former shareholders of Bozhou Xinghe. RMB 20 million (approximately USD$3.1 million) of the total consideration will
be paid within 15 business days after the Company receives the new
business license, and the remainder of RMB
10 million (approximately USD$1.5
million) will be paid within 9 months after the Company
receives the new business license.
About Bozhou Xinghe
Established in April 2009, Bozhou
Xinghe Pharmaceutical Co., Ltd. is a TCM herbs processing plant
located in the Industrial Park of Jiaocheng District, Bozhou city,
Anhui province. Bozhou Xinghe
occupies 40.5 Chinese Mu (approximately 6.7 acres), with a
construction area of 14,657.9 square meters (approximately
157,776.3 square feet). On August
2010, it obtained the Pharmaceutical Good Manufacturing
Practice (GMP) certificate. The production plant is filled with
many advanced herbal piece processing equipment, and strictly
follows the standards of TCM herbal pieces production process in
order to ensure the product quality. The design processing capacity
will be up to approximately 8,000 tons annually.
About Global Pharm
Global Pharm Holdings Group, Inc., a growing integrated
pharmaceutical company, is engaged in pharmaceutical distribution
and traditional Chinese medicine (TCM) herb planting business in
the People's Republic of China.
Headquartered in Shenzhen, Global
Pharm operates its pharmaceuticals distribution business through
five subsidiaries, and operates its TCM herbs cultivation business
through three subsidiaries located in Shandong, Anhui, and Jilin provinces. At March 31, 2011, Global Pharm owns GSP-certified,
modern logistics distribution centers totally occupying
approximately 237,400 square feet, manages over 9,000 inventory
products and leases approximately 1,800 acres of herbal cultivation
land. The Company focuses on building regional distribution
channels, as well as local capillary sales network with high-margin
products portfolio. Currently, its sales network covers
Shandong, Jilin and Anhui provinces, as well as other developed
provinces in China. Global Pharm
intends to establish an integrated value chain in the
pharmaceutical industry through strategic acquisitions within TCM
cultivation, pharmaceutical distribution and retail sectors. Global
Pharm anticipates it will achieve a solid distribution capacity and
develop into a major rapid-growing and profitable pharmaceutical
company. For further information, please visit the Company's
corporate website at http://www.globalpharmholdings.com.
Forward-looking Statements
Certain statements set forth in this press release contain or
may contain forward-looking statements and information that are
based upon beliefs of, and information currently available
to, our management as well as estimates and assumptions made by our
management. Such statements reflect the current view of our
management with respect to future events and are subject to risks,
uncertainties, assumptions and other factors as they relate to our
industry, our operations and results of operations, plans
for future facilities, capital-expenditure plans and any businesses
that we may acquire. Although we believe that the expectations
reflected in the forward looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements. Except as required by applicable law,
including the U.S. federal securities laws, we do not intend to
update any of the forward-looking statements to conform them to
actual results.
For Additional Information Contact
Global Pharm Holdings Group, Inc.
Ms. Susan Liu
Phone: +86-755-3693-9373 (Shenzhen,
China)
Email: susanliu@globalpharmholdings.com
CCG Investor Relations, Inc.
Ms. Linda Salo, Account Manager
Phone: +1-646-922-0894 (New York,
USA)
Email:linda.salo@ccgir.com
SOURCE Global Pharm Holdings Group, Inc.