BIMI Enters into Definitive Agreement to Acquire Phenix Bio Inc.

Rhea-AI Summary

BIMI International Medical Inc. (NASDAQ: BIMI) announced the acquisition of Phenix Bio Inc. for $1.8 million, comprising $180,000 in cash and 2.7 million BIMI shares at $0.60 each, pending shareholder approval. The deal aims to enhance BIMI's growth strategy by expanding its healthcare product distribution capabilities, particularly targeting recovery and disease prevention areas. The transaction is expected to close in Q3 2022, contingent on shareholder approval by January 2023. CEO Tiewei Song emphasized the acquisition's potential to deliver quality products and create shareholder value.

Positive

• Acquisition of Phenix Bio expected to expand BIMI's healthcare product distribution.
• Phenix pursuing exclusive rights for nine healthcare products, targeting multiple health markets.
• Transaction may create long-term value for shareholders through increased product offerings.

Negative

• Stock consideration for Phenix acquisition subject to shareholder approval; risk if not approved.
• Potential cash payment if shareholder approval is not obtained by January 15, 2023.

Transaction expected to expand business and fuel growth

New York, July 07, 2022 (GLOBE NEWSWIRE) -- BIMI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”), a healthcare products and services provider, today announced that on July 5, 2022, the Company entered into a definitive stock purchase agreement (the "SPA") to acquire Phenix Bio Inc. (“Phenix”), a California based corporation that will distribute healthcare products. This acquisition is a critical initiative to advance the Company's business strategy to expand its business scale and fuel its growth.

Pursuant to the SPA, the Company agreed to purchase all the issued and outstanding equity interest in Phenix in consideration of $1,800,000, consisting of $180,000 in cash and 2,700,000 common shares of BIMI valued at a price of $0.60 per share from the Company’s Chairman, Mr. Fnu Oudom. The stock consideration is subject to shareholder approval. If shareholder approval is not obtained prior to January 15, 2023, the Company will pay cash for the outstanding amount due.

The audit committee and the board of directors of the Company unanimously approved the Company’s entry into the SPA. The closing of the transaction is expected to take place in the third quarter of 2022.

Mr. Tiewei Song, Chief Executive Officer of BIMI International Medical Inc., commented, “We are excited to acquire Phenix and thrilled about the opportunity ahead of us as Phenix is in the process of securing exclusive distribution rights for nine healthcare products. The goal of Phenix is to target multiple fields, such as general recovery, cardiovascular and cerebrovascular disease prevention, male health care, female health care, and memory enhancement for the elderly. We intend to capitalize on Phenix’s high-growth potential to further complement our business model. We believe that the transaction paves the way for BIMI to expand its business scope and positions us to provide more quality products to a wide range of customers. We are dedicated to benefiting more patients and creating long-term value for our shareholders.”

About Phenix Bio Inc.

Phenix Bio Inc. is currently in the process of securing exclusive distribution rights for nine healthcare products to be developed by a third party that will target general recovery, cardiovascular and cerebrovascular disease prevention, male health care, female health care, and memory enhancement for the elderly. The products are to be sold by sub-distributors in various territories.

About BIMI International Medical Inc.

BIMI International Medical Inc. was founded in 2006. The Company is now exclusively a healthcare products and services provider, offering a broad range of healthcare products and related services and operates five private hospitals in China. For more information, please visit the Company's website at http://www.usbimi.com/.

Safe Harbor Statements

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company’s ability to achieve profitable operations, its ability to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements, the effects of the spread of COVID-19, the demand for the Company’s products and services in the People’s Republic of China, general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the United States Securities and Exchange Commission.

Investor Relations Contact

Ascent Investor Relations LLC
Ms. Tina Xiao
Email: tina.xiao@ascent-ir.com  
Tel: +1 917 609 0333

FAQ

What is the purpose of BIMI's acquisition of Phenix Bio Inc.?

The acquisition aims to expand BIMI's healthcare product distribution and enhance its growth strategy.

What are the terms of the acquisition deal for Phenix Bio Inc. by BIMI?

BIMI is acquiring Phenix for $1.8 million, consisting of $180,000 in cash and 2.7 million shares valued at $0.60 per share.

When is the expected closing date for BIMI's acquisition of Phenix?

The transaction is expected to close in the third quarter of 2022.

What are the key health markets that Phenix targets with its products?

Phenix targets general recovery, cardiovascular and cerebrovascular disease prevention, male and female health care, and memory enhancement for the elderly.

What risks are associated with the acquisition of Phenix by BIMI?

If shareholder approval is not obtained by January 15, 2023, BIMI may have to pay the entire acquisition amount in cash, affecting liquidity.