Huifeng Bio-Pharmaceutical, specializing in developing and producing botanical extracts and other raw materials for pharmaceuticals, said it will acquire 90 percent of the equity ownership of Shangqiu Kexin, a Rutin manufacturer in China, at a price of $1.75 million. As a result of the acquisition, Kexin will be a wholly-owned subsidiary of Huifeng.

According to the agreement, Huifeng will acquire 90 percent of the equity ownership of Kexin by issuing 2,300,000 restricted shares of its common stock at the basis of $0.7 per share and paying $140,000 in cash to Kexin. The average annual net income of Kexin is expected to be $650,000 in the following three years.

"We are proud to include Kexin as part of the Huifeng family. Kexin has a strong reputation for crude rutin and some high quality rutin series products that deliver value to pharmaceuticals plants and healthcare professionals around the world," said Mr Jing'an Wang, the CEO of Huifeng Bio-Pharmaceutical. "The experience and technology of Kexin are critical to the development of our markets."

Mr Wang continued, "With the addition of Kexin's diverse rutin products, Huifeng will be able to offer a full range of rutin series products to our customers, which will definitely leverage Huifeng's brand recognition as the largest Rutin producer in China and a prominent generic pharmaceutical company in many other markets. We believe Kexin will contribute to our long-term success."