BIMI International Medical Inc. Enters Into A MOU to Acquire Chongqing Zhuoda Pharmaceutical Co, Ltd.

Rhea-AI Summary

BIMI International Medical Inc. announced on August 2, 2021, a Memorandum of Understanding to acquire Chongqing Zhuoda Pharmaceutical Co, Ltd. The acquisition aims to enhance BIMI's operations in the healthcare sector, leveraging Zhuoda's extensive portfolio of over 1,220 pharmaceutical products and medical equipment. The deal's value will partly be in BIMI common shares at $3.00 each, with performance-based adjustments in the first two years post-closing. CEO Tiewei Song emphasized the potential for accelerated revenue growth and increased market presence.

Positive

• Acquisition of Zhuoda enhances BIMI's market presence in healthcare.
• Zhuoda has over 1,220 pharmaceutical products and established relationships with major medical manufacturers.
• Potential for accelerated revenue growth and future profitability.

Negative

• Acquisition may pose integration challenges.
• Payment in shares could dilute existing shareholder equity.

NEW YORK, Aug. 02, 2021 (GLOBE NEWSWIRE) -- BIMI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”), a leading healthcare products and services provider in China, today announced the signing of a Memorandum of Understanding (“MOU”) on July 30, 2021 to acquire Chongqing Zhuoda Pharmaceutical Co, Ltd.(“Zhuoda”).

Pursuant to the MOU, BIMI and the owners of Zhouda have agreed to sign a stock purchase agreement (“Agreement”) after completing the relevant assessment and evaluation of Zhuoda. Upon signing the Agreement, the Company will pay a portion of the consideration in BIMI’s common shares valued at a price of $3.00 per share. The remainder of the consideration will be subject to post-closing adjustments based on the performance of Zhuoda for the first two calendar years after the closing of the transaction.

Zhuoda, which was established in 2009, is a wholesale supplier of pharmaceuticals and medical equipment, including over 1,220 pharmaceutical products, thousands of Chinese herbal medicines and more than 50 types of medical equipment. It also has relationships with a number of international medical device manufactures such as GE and Philips, and large domestic medical manufacturers such as LEPU Medical and Landwind Medical.

“Zhuoda’s large customer base and operational resources will position us for what we expect to be an accelerated path to continued revenue growth and future profitability,”” said Mr. Tiewei Song, Chief Executive Officer and President of the Company. “The combination of Zhuoda with the BIMI’s current business increases our footprint in an attractive healthcare market. We look forward to closing the transaction and continuing to move forward with our growth plans,” concluded Mr. Song.

About BIMI International Medical Inc.

BIMI International Medical Inc. was founded in 2006. The Company is now exclusively a healthcare products and provider, offering a broad range of healthcare products and related services and operates two private hospitals in China. For more information, please visit www.usbimi.com.

Safe Harbor Statement

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:

Janice Wang
EverGreen Consulting Inc.
Email: IR@changqingconsulting.com
Phone: +1 571-464-9470 (from U.S.)
+86 13811768559 (from China)

FAQ

What is the significance of BIMI's acquisition of Zhuoda?

The acquisition is expected to expand BIMI's market presence and accelerate revenue growth.

How will BIMI pay for the acquisition of Zhuoda?

BIMI will pay part of the acquisition with common shares valued at $3.00 each, with the rest subject to performance adjustments.

When was the MOU for the acquisition signed?

The Memorandum of Understanding was signed on July 30, 2021.

What type of products does Zhuoda offer?

Zhuoda offers a range of pharmaceuticals, medical equipment, and Chinese herbal medicines.

What are the risks associated with the acquisition of Zhuoda?

Risks include potential integration challenges and the effect of share issuance on shareholder equity.