BOQI International Medical Inc. Enters into MOU to Acquire Chongqing Guoyitang Hospital

Rhea-AI Summary

BOQI International Medical Inc. (NASDAQ: BIMI) signed a Memorandum of Understanding (MoU) with Chongqing Guoyitang Hospital on October 22, 2020. The agreement outlines a four-stage process leading to a potential acquisition. Key steps include auditing and evaluating the hospital, followed by signing a Stock Purchase Agreement. Chongqing Guoyitang, a first-level hospital specializing in digestive diseases, anticipates an income of $7-8.5 million and a profit of $0.7-0.85 million for 2021. CEO Mr. Tiewei Song emphasized the strategic importance of this partnership for their telemedicine expansion.

Positive

• The MoU with Chongqing Guoyitang Hospital indicates strategic expansion into the telemedicine sector.
• Projected income and profit from Chongqing Guoyitang Hospital for 2021 are promising, potentially benefiting BIMI.
• The agreement sets clear stages for the acquisition process, enhancing operational transparency.

Negative

• Potential risks associated with the acquisition process may affect the company's operational efficiency.
• Dependence on the success of the telemedicine system could expose BIMI to market fluctuations.
• Uncertainties regarding regulatory compliance in China might pose risks to integration plans.

NEW YORK, Oct. 23, 2020 (GLOBE NEWSWIRE) -- BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”) today announces the signing of a Memorandum of Understanding (MoU) with Chongqing Guoyitang Hospital Co., Ltd(“Chongqing Guoyitang Hospital”) on October 22, 2020.

Pursuant to the MOU, BOQI International Medical Inc. and Chongqing Guoyitang Hospital Co., Ltd. agreed to move forward on four stages of work. First, Chongqing Guoyitang Hospital to complete all relevant assessment and audit information of the hospital. Second, BIMI designates an independent third-party to complete the on-site audit and evaluation. Third, BIMI and Chongqing Guoyitang Hospital to sign a Stock Purchase Agreement based on the audit and evaluation result. Fourth, Chongqing Guoyitang Hospital to complete the industrial and commercial procedures for the equity change.

Chongqing Guoyitang Hospital is a first-level comprehensive hospital that features the treatment of digestive diseases. It covers an area of 43,000 square feet and has more than 200 employees. The hospital has equipped with a series of customized industry-leading equipment for the digestive system, including AAAAA-level endoscopic decontamination and disinfection system, laminar flow theatres, Olympus gastrointestinal electronic scope, Jinshan OMOM capsule endoscopy, high-frequency argon knife, EGEG-2D gastrointestinal electrograph, YHO4E Helicobacter pylori Detector, RONGZHI pulsed electromagnetic field therapy devices, YM-W gastric motility instrument, YD800A colon therapy equipment, etc. Established on November 10, 2015, the hospital has accumulated experience in the treatment of digestive and chronic diseases. The hospital estimated a $7-8.5 million income and a $0.7-0.85 million profit in the year 2021.  

“Our telemedicine system for hospitals has made initial progress. At this stage, we need to expand cooperation with hospitals to support online customers. Chongqing Guoyitang Hospital is one of our strategic partners and can play an important role in our telemedicine system. Besides, we are looking for other opportunities to acquire more hospitals, continuously enrich our business lines, and bring more benefits to our investors.” Said Mr. Tiewei Song, Chief Executive Officer and President of BOQI International Medical Inc.

About BOQI International Medical Inc.

BOQI International Medical Inc. (formerly known as NF Energy Saving Corporation) (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. Investors are urged to read the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020 for further information about the Company’s financial results, liquidity and capital resources.

IR Contact:

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

FAQ

What is BIMI's recent acquisition announcement?

BIMI has signed a Memorandum of Understanding with Chongqing Guoyitang Hospital for a potential acquisition.

What are the expected financial results from Chongqing Guoyitang Hospital?

Chongqing Guoyitang Hospital is estimated to generate $7-8.5 million in income and a profit of $0.7-0.85 million in 2021.

How will the MoU impact BIMI's business?

The MoU aims to enhance BIMI's telemedicine offerings by partnering with Chongqing Guoyitang Hospital.

What are the stages outlined in the MoU with Chongqing Guoyitang Hospital?

The MoU includes assessment, independent audit, signing a Stock Purchase Agreement, and completing necessary procedures for equity change.

What are the potential risks of the MoU for BIMI investors?

Investors should be aware of risks related to operational efficiency, market fluctuations, and regulatory compliance in China.