Julianna Lu, President/CEO of China Health Holding, Inc., a developer, marketer and manufacturer of natural herbal supplement products based on traditional Chinese medicine, announced that CHHH has executed a definitive acquisition agreement with Ms. Chen, Meiying, Chairman of Board and Shanxi MeiChen Pharmaceuticals Co. Ltd., and all of the shareholders of Shanxi MeiChen Pharmaceutical Co. Ltd., for the acquisition of 100% of the issued and outstanding stock of Shanxi MeiChen Pharmaceuticals Co. Ltd. (SMCP).
Pursuant to the terms of the acquisition agreement, CHHH agreed to pay $24,800,000 RMB for 100% issued and outstanding stock of SMCP payable as follows: (i) 80% of the purchase price payable in shares of common stock of CHHH based on the average closing price of CHHH's common stock as reported on the OTCBB NASDAQ for the five (5) day period prior to the closing date of the acquisition transaction; and (ii) 20% of the purchase price payable in cash within 30 days after the transaction closing.
SMCP is a China-FDA-certified GMP-standards pharmaceutical drug manufacturer based in Shanxi, PR China, which has a total list of 27 China-FDA-certified pharmaceutical drugs that are distributed to China-FDA-Licensed Hospitals and drug stores across Shanxi province and across PR China.
The parties have agreed to use their best efforts to complete the transactions contemplated by the Agreement approximately 30 business days from the execution of the Agreement. Prior to closing, however, all closing conditions, including, but not limited to, the completion of satisfactory legal and financial due diligence, as well as the delivery of stock certificates to the Company evidencing the ownership of the sellers of the shares of Shanxi MeiChen Pharmaceuticals Co. Ltd. must be satisfied.
CHHH believes that the acquisition of SMCP will create incremental value to the Company and its shareholders as a result of the expected contribution from SMCP on the Company's results of operations and assets. Management believes that by acquiring SMCP, SMCP will obtain established China-FDA-Certified Pharmaceutical Drug GMP manufacturing facilities, gain access to extensive hospital and drug stores distribution channels in China, and obtain the rights to 27 China-FDA-certified pharmaceutical drugs. The Company further believes that, from a strategic perspective, this acquisition will save both time and money as it would have required substantial time and capital investment to gain access to the resources and facilities of SMCP, which the acquisition facilitates for the Company.
Source:佚名