BOQI International Medical Inc. Enters into MOU to Acquire 3 Hospitals

Rhea-AI Summary

BOQI International Medical Inc. (NASDAQ: BIMI) signed a Memorandum of Understanding on March 24, 2021, to acquire three hospitals: Yunnan Yuxi Minkang Hospital, Wuzhou Qiangsheng Hospital, and Suzhou Eurasia Hospital. The Sellers will receive cash or common shares at $3.00 each, with a deposit of $75,000 due shortly after the agreement. The hospitals have diverse specialties and significant infrastructure, potentially enhancing BIMI's healthcare services. This move reflects BIMI's strategy to expand its footprint in the healthcare sector.

Positive

• Acquisition of three hospitals could significantly expand BIMI's healthcare services.
• Diverse specialties of the hospitals cover various medical needs, enhancing BIMI's service offerings.

Negative

• Acquisition may lead to financial strain if integration costs exceed expectations.
• Potential risks include meeting NASDAQ listing requirements amidst operational challenges.

NEW YORK, March 25, 2021 (GLOBE NEWSWIRE) -- BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”) today announces the signing of a Memorandum of Understanding (“MOU”) with two individual sellers (“Sellers”) on March 24, 2021, with the intent of acquiring three hospitals, Yunnan Yuxi Minkang Hospital, Wuzhou Qiangsheng Hospital, and Suzhou Eurasia Hospital (“Hospitals”). The Sellers own 100% of the shares of these three companies.

Pursuant to the MOU, BOQI International Medical Inc. and the Sellers have been reached a preliminary consensus on mergers and acquisitions. They agreed to sign a Stock Purchase Agreement (“Agreement”) after completing the relevant assessment and evaluation of the Hospitals. After signing the Agreement, the Company will pay the consideration in cash or BIMI’s common shares, at a price of $3.00 per share. The Sellers agreed to pay BIMI $75,000 as a deposit within 3 days after signing the MOU.

Yunnan Yuxi Minkang Hospital was established in 1998. It is a comprehensive hospital integrating medical treatment, disease prevention, health care, scientific research, rehabilitation, and physical examination. The hospital covers an area of more than 172,000 square feet. It has more than 20 clinical departments, including internal medicine, minimally invasive surgery, gynecology, urology, traditional Chinese medicine, ENT, laboratory, imaging, anesthesiology, and physical examination center, with 200 beds.

Wuzhou Qiangsheng Hospital is a first-level comprehensive hospital. It has a 4-story building covering an area of more than 56,000 square feet. The hospital has a professional team of more than 50 medical personnel. It has specialists focus on internal medicine, surgery, traditional Chinese medicine, and urology. The hospital has 30 beds. It is equipped with advanced diagnosis and treatment equipment, including the 1000-level laminar flow operating room.

Suzhou Eurasia Hospital is one of the largest andrology specialist hospitals in northern Anhui. It covers an area of more than 56,000 square feet. The hospital has six featured departments, which diagnose and treat prostate disease, sexual dysfunction, reproductive infection, reproductive plastic surgery, male infertility, and urinary stones. It has established a series of advanced diagnosis and treatment systems, including the penile hemodynamic monitoring system, sperm motility analysis system, Kurt multifunctional effect treatment system, ultrasound treatment for the prostate, semiconductor laser therapeutic apparatus, and photodynamic therapy, etc.

About BOQI International Medical Inc.

BOQI International Medical Inc. (NASDAQ: BIMI) was founded in 2006. In February 2019, the Board of Directors of the company was reorganized with a focus on the health industry. The Company is now exclusively a healthcare products provider, offering a broad range of healthcare products and related services. For more information about BOQI International Medical, 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 the Coronavirus (COVID-19), the demand for the Company’s products and the Company’s customers’ economic condition, risk of operations 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.

IR Contact:

Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: BIMI@dgipl.com

FAQ

What is the purpose of the MOU signed by BIMI?

The MOU is aimed at acquiring three hospitals to expand BIMI's healthcare service offerings.

What is the transaction value for the acquisition involving BIMI?

The consideration for the acquisition will be in cash or BIMI common shares at a price of $3.00 per share.

What hospitals are being acquired by BIMI?

BIMI is acquiring Yunnan Yuxi Minkang Hospital, Wuzhou Qiangsheng Hospital, and Suzhou Eurasia Hospital.

What are the specialties of the hospitals BIMI is acquiring?

The hospitals cover various specialties including internal medicine, surgery, and andrology.

What are the risks associated with BIMI's acquisition?

Risks include financial strain from integration costs and challenges in meeting NASDAQ listing requirements.