STOCK TITAN

BGM Group Acquires Wonder Dragon to Accelerate "Healthcare" Strategy

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Positive)

BGM Group (Nasdaq: BGM) has announced the acquisition of Wonder Dragon Global through a share-based transaction valued at RMB550 million. The deal involves issuing 38,165,290 Class A ordinary shares at $2 per share, with completion expected in Q2 2025.

Wonder Dragon brings over 3,000 metric tons of premium Qingzhuan dark tea inventory (1,670 tons raw materials, 1,350 tons finished products) to BGM Group's portfolio. The acquisition aims to strengthen BGM's healthcare sector presence by combining Wonder Dragon's tea resources with BGM's AI technology and biotechnology platform.

The company plans to develop new health-focused products, including ginseng and goji berry Qingzhuan dark tea variants, while optimizing production efficiency and exploring medicinal applications through its AI-powered platform.

BGM Group (Nasdaq: BGM) ha annunciato l'acquisizione di Wonder Dragon Global tramite una transazione basata su azioni del valore di 550 milioni di RMB. L'accordo prevede l'emissione di 38.165.290 azioni ordinarie di Classe A a 2 dollari per azione, con completamento previsto nel secondo trimestre del 2025.

Wonder Dragon apporta oltre 3.000 tonnellate metriche di pregiato tè scuro Qingzhuan (1.670 tonnellate di materie prime e 1.350 tonnellate di prodotti finiti) al portafoglio di BGM Group. L'acquisizione mira a rafforzare la presenza di BGM nel settore sanitario, combinando le risorse di tè di Wonder Dragon con la tecnologia AI e la piattaforma biotecnologica di BGM.

L'azienda intende sviluppare nuovi prodotti orientati alla salute, inclusi tè scuro Qingzhuan con ginseng e bacche di goji, ottimizzando l'efficienza produttiva ed esplorando applicazioni medicinali attraverso la sua piattaforma basata sull'intelligenza artificiale.

BGM Group (Nasdaq: BGM) ha anunciado la adquisición de Wonder Dragon Global mediante una transacción basada en acciones valorada en 550 millones de RMB. El acuerdo implica la emisión de 38.165.290 acciones ordinarias Clase A a 2 dólares por acción, con finalización prevista para el segundo trimestre de 2025.

Wonder Dragon aporta más de 3.000 toneladas métricas de té oscuro Qingzhuan premium (1.670 toneladas de materia prima y 1.350 toneladas de productos terminados) al portafolio de BGM Group. La adquisición busca fortalecer la presencia de BGM en el sector salud combinando los recursos de té de Wonder Dragon con la tecnología de IA y la plataforma biotecnológica de BGM.

La compañía planea desarrollar nuevos productos enfocados en la salud, incluyendo variantes de té oscuro Qingzhuan con ginseng y bayas de goji, mientras optimiza la eficiencia productiva y explora aplicaciones medicinales a través de su plataforma impulsada por IA.

BGM 그룹 (나스닥: BGM)은 원더 드래곤 글로벌을 주식 기반 거래로 인수했다고 발표했으며, 거래 가치는 5억 5천만 위안입니다. 이번 거래는 주당 2달러에 38,165,290주의 클래스 A 보통주를 발행하며, 2025년 2분기 완료가 예상됩니다.

원더 드래곤은 3,000톤 이상의 고급 칭쭈안 다크티 재고(원재료 1,670톤, 완제품 1,350톤)를 BGM 그룹의 포트폴리오에 추가합니다. 이번 인수는 원더 드래곤의 차 자원과 BGM의 AI 기술 및 바이오테크 플랫폼을 결합해 BGM의 헬스케어 부문 입지를 강화하는 것을 목표로 합니다.

회사는 인삼과 구기자 칭쭈안 다크티 변종을 포함한 건강 중심의 신제품 개발을 계획하고 있으며, 생산 효율성을 최적화하고 AI 기반 플랫폼을 통해 의학적 응용도 탐색할 예정입니다.

BGM Group (Nasdaq : BGM) a annoncé l'acquisition de Wonder Dragon Global via une transaction en actions évaluée à 550 millions de RMB. L'accord prévoit l'émission de 38 165 290 actions ordinaires de Classe A à 2 dollars par action, avec une finalisation attendue au deuxième trimestre 2025.

Wonder Dragon apporte plus de 3 000 tonnes métriques de thé noir Qingzhuan premium (1 670 tonnes de matières premières, 1 350 tonnes de produits finis) au portefeuille de BGM Group. Cette acquisition vise à renforcer la présence de BGM dans le secteur de la santé en combinant les ressources en thé de Wonder Dragon avec la technologie IA et la plateforme biotechnologique de BGM.

L'entreprise prévoit de développer de nouveaux produits axés sur la santé, notamment des variantes de thé noir Qingzhuan au ginseng et aux baies de goji, tout en optimisant l'efficacité de la production et en explorant des applications médicales via sa plateforme alimentée par l'IA.

BGM Group (Nasdaq: BGM) hat die Übernahme von Wonder Dragon Global durch eine aktienbasierte Transaktion im Wert von 550 Millionen RMB bekanntgegeben. Der Deal umfasst die Ausgabe von 38.165.290 Stammaktien der Klasse A zu je 2 US-Dollar, der Abschluss wird für das zweite Quartal 2025 erwartet.

Wonder Dragon bringt über 3.000 metrische Tonnen hochwertigen Qingzhuan Dunkeltee (1.670 Tonnen Rohmaterial, 1.350 Tonnen Fertigprodukte) in das Portfolio der BGM Group ein. Die Übernahme soll die Präsenz von BGM im Gesundheitssektor stärken, indem die Tee-Ressourcen von Wonder Dragon mit BGMs KI-Technologie und Biotechnologieplattform kombiniert werden.

Das Unternehmen plant die Entwicklung neuer gesundheitsorientierter Produkte, darunter Varianten von Qingzhuan Dunkeltee mit Ginseng und Goji-Beeren, während die Produktionseffizienz optimiert und medizinische Anwendungen über die KI-gestützte Plattform erforscht werden.

Positive
  • Acquisition adds 3,000 metric tons of premium tea inventory to BGM's portfolio
  • Strategic expansion into healthcare sector with medicinal tea products
  • Integration of AI technology for production optimization and product development
  • Diversification of product portfolio with new health-focused tea variants
Negative
  • Share-based acquisition resulting in 38.17M new shares, potentially diluting existing shareholders
  • Significant investment of RMB550 million in traditional tea inventory

Insights

BGM's all-stock acquisition of Wonder Dragon adds significant tea inventory but comes with substantial shareholder dilution at below-market pricing.

BGM Group's RMB550 million acquisition of Wonder Dragon represents a strategic but financially complex transaction. The deal structure involves issuing 38,165,290 Class A ordinary shares at $2 per share - substantially below BGM's current market price of $11.0041. This creates approximately 30% dilution for existing shareholders while pricing new shares at an 82% discount to market value.

What BGM receives for this substantial equity issuance is 3,000 metric tons of premium Qingzhuan dark tea inventory (1,670 tons raw materials, 1,350 tons finished products). The acquisition appears aimed at securing valuable physical assets to support BGM's healthcare product development rather than immediate revenue generation.

The transaction's all-stock structure preserves BGM's cash position while expanding their tangible asset base. However, the significant discount on newly issued shares warrants attention as it substantially dilutes existing shareholder value on a per-share basis.

From a balance sheet perspective, this acquisition immediately strengthens BGM's inventory position in a specialty category with both commercial and potential medicinal applications. The transaction timeline is relatively quick, with completion expected by Q2 2025, suggesting minimal regulatory concerns.

BGM's acquisition of Wonder Dragon provides premium tea inventory essential for their AI-driven healthcare product development strategy.

BGM's acquisition of Wonder Dragon represents a calculated move to secure premium raw materials essential for their healthcare innovation pipeline. The 3,000 metric tons of Qingzhuan dark tea isn't merely inventory - it's the foundation for a comprehensive R&D platform combining traditional medicinal properties with modern biotechnology.

Qingzhuan dark tea has historically been valued for specific bioactive compounds and medicinal properties. What makes this acquisition strategically sound is BGM's explicit plan to leverage their AI technology platform and big data analytics to identify, extract, and optimize these active compounds for healthcare applications.

The company's stated strategy indicates two parallel development tracks: 1) optimizing production efficiency of existing tea products, and 2) accelerating medicinal applications development. By highlighting specific product innovations like ginseng Qingzhuan dark tea and goji berry Qingzhuan dark tea, BGM demonstrates a concrete product roadmap rather than vague intentions.

This acquisition effectively transforms BGM from a technology company dabbling in healthcare to one with substantial physical assets specialized for health applications. The company is positioning itself at the intersection of traditional medicine, modern biotechnology, and consumer health products - creating a differentiated "medicine + tea + health" ecosystem that could potentially address multiple market segments simultaneously.

CHENGDU, China, April 21, 2025 /PRNewswire/ -- BGM Group Ltd. (Nasdaq: BGM) today announced that it has signed a definitive transaction agreement with the existing shareholders of Wonder Dragon Global Limited ("Wonder Dragon"), to acquire 100% of the equity interests of Wonder Dragon by issuing 38,165,290 Class A ordinary shares at a price of $2 per share, for a total transaction valuation of RMB550 million. The transaction is expected to be completed in the second quarter of 2025.

Wonder Dragon possesses over 3,000 metric tons of premium Qingzhuan dark tea inventory, comprising 1,670 metric tons of raw materials and 1,350 metric tons of finished products. These premium tea products, known for their medicinal and collectible historical value, provide a solid foundation for BGM Group's research and development efforts.

This acquisition strengthens BGM Group's position in the healthcare sector by expanding its health product portfolio and market reach. The company has been at the forefront of integrating AI technology, big data analytics, and biopharmaceutical innovations to modernize traditional industries. Post-acquisition, BGM Group plans to optimize tea production efficiency, enhance product adaptability, and accelerate the development of active ingredients for medicinal applications using its AI-powered decision-making platform.

Mr. Xin Chen, CEO of BGM Group, commented: "Wonder Dragon's Qingzhuan dark tea resources, combined with our biotechnology platform, will significantly advance our medicinal tea product development and distribution. By leveraging our technological expertise, we intend to introduce new health-focused tea products like ginseng Qingzhuan dark tea and goji berry Qingzhuan dark tea, further diversifying our 'medicine + tea + health' product ecosystem."

About BGM Group Ltd

BGM Group Ltd. has a strategic focus on the technology fields of AI application, intelligent robots, algorithmic computing power, cloud computing, and biopharmaceuticals.

In terms of AI application implementation, the group relies on big data mining and AI Agent technology, and utilizes the two platforms of Du Xiao Bao and Bao Wang to provide comprehensive and professional AI solutions and intelligent robot services for insurance companies, insurance brokers, and consumers. Its services cover multiple key scenarios such as sales and marketing, underwriting assessment, claims processing, and customer service. The group is capable of analyzing consumer data, building consumer profiles, accurately predicting insurance needs, and providing highly customized services for consumers.

In the field of biopharmaceuticals, the group's biopharmaceutical division mainly produces oxytetracycline API, crude heparin sodium, and licorice preparations, which are widely supplied to the global animal husbandry, pharmaceutical, and drug retail markets. The group deeply integrates AI-assisted decision-making into every link of production and manufacturing, achieving supply chain optimization, process efficiency improvement, and market trend prediction. This provides scientific decision-making basis for the management and offers high-quality products and precise services for consumers.

For investor and media inquiries, please contact:
info@qiliancorp.com

Cision View original content:https://www.prnewswire.com/news-releases/bgm-group-acquires-wonder-dragon-to-accelerate-healthcare-strategy-302433347.html

SOURCE BGM Group Ltd

FAQ

What is the value of BGM Group's acquisition of Wonder Dragon?

BGM Group is acquiring Wonder Dragon for RMB550 million through the issuance of 38,165,290 Class A ordinary shares at $2 per share.

How much tea inventory does Wonder Dragon bring to BGM Group?

Wonder Dragon possesses over 3,000 metric tons of premium Qingzhuan dark tea inventory, including 1,670 tons of raw materials and 1,350 tons of finished products.

When will BGM Group complete the Wonder Dragon acquisition?

The acquisition is expected to be completed in the second quarter of 2025.

What new products will BGM develop after acquiring Wonder Dragon?

BGM plans to develop new health-focused products including ginseng Qingzhuan dark tea and goji berry Qingzhuan dark tea variants.

How will BGM integrate Wonder Dragon's tea resources?

BGM will use its AI-powered platform to optimize tea production efficiency and develop active ingredients for medicinal applications.
BGM Group

NASDAQ:BGM

BGM Rankings

BGM Latest News

BGM Stock Data

1.02B
24.09M
7.29%
0%
0.03%
Drug Manufacturers - Specialty & Generic
Healthcare
Link
China
Chengdu