ECMOHO Limited Invests in Developer of Chinese Herbal Medicine Based Health and Wellness Products
ECMOHO Limited (Nasdaq: MOHO) has entered into a $30 million investment agreement with Anze Premium Health and Beauty Pte. Ltd. The commitment involves up to $15 million for equity and $15 million for zero coupon convertible notes. The payments will occur over three installments, with a total 29.7% equity acquisition in Anze expected upon completion. As the wellness market in China grows, the CEO highlights increasing demand for herbal medicine products, projected to reach over $21 billion by 2024. ECMOHO aims to leverage Anze's R&D capabilities to strengthen its product portfolio.
- Investment agreement with Anze amounts to $30 million, enhancing growth opportunities.
- Potential 29.7% equity stake in Anze could significantly boost ECMOHO's market position.
- Growing herbal medicine market in China projected to exceed $21 billion by 2024, promising potential gains.
- Investment contingent on performance conditions, introducing uncertainty in payment realizations.
- Risks associated with Anze's ability to repay the convertible notes and generate profits.
SHANGHAI, China, Aug. 03, 2020 (GLOBE NEWSWIRE) -- ECMOHO Limited ("ECMOHO" or the "Company"; Nasdaq: MOHO) announced today that it has entered into an investment agreement with Anze Premium Health and Beauty Pte. Ltd. (“Anze”), a company involved in the research and development of Chinese herbal medicine-based health and wellness products. The Company has committed to paying Anze up to US
The consideration to be paid by the Company will be payable over three installments, each payment being contingent upon the satisfaction of certain performance conditions by Anze, as set out in the transaction documents. Upon the completion of the third and final equity installment, the Company is expected to cumulatively own
Commenting on the investment, the Company’s CEO, Zoe Wang, said,
“We believe that Chinese herbal medicine based health and wellness products are experiencing increasing demand from Chinese consumers as a result of a number of factors, including an aging population, a growing middle class, awareness of the importance of disease prevention, particularly as a result of the ongoing COVID-19 pandemic around the world, and supportive government policies in China. According to the Forward Industry Research Institute, it is estimated that the size of the herbal medicine-based wellness products market in China will exceed RMB 149 billion (approximately US
We are continually looking for new opportunities to strengthen our product portfolio in this significant and growing segment of the health and wellness industry. Based on our due diligence, Anze has done extensive research in the formulation of Chinese herbal medicine-based health and wellness products. We believe Anze’s strong research and development capabilities complement well our expertise in supply chain logistics, consumer analytics, brand management, and brand marketing and promotion. Together we expect to capitalize on the favorable trend in the herbal medicine-based health and wellness market.”
Safe Harbor Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “going forward,” “outlook” and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, such as the projected growth of the herbal medicine-based health and wellness products industry in China, consumers’ acceptance of health and wellness products developed by Anze, Anze’s ability to repay its convertible note, and whether the investment in Anze can be profitable, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding some of these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
About ECMOHO Limited
ECMOHO is a leading integrated solution provider in the non-medical health and wellness market in China. The Company acts as the bridge between brand owners and Chinese consumers by marketing and distributing health supplements and food, mother and child care products, personal care products, household healthcare equipment and other health and wellness products. Through over eight years of operation, ECMOHO has built an ecosystem where Chinese consumers are provided with customized health and wellness solutions that include quality products and trustworthy content.
For more information, please visit http://ir.ecmoho.com/.
For investor and media inquiries, please contact:
ECMOHO Ltd.
Investor Relations
Email: ir@ecmoho.com
FAQ
What is the investment amount ECMOHO is committing to Anze?
What percentage of Anze's equity will ECMOHO own after the investment?
How will the payments to Anze be structured?
When will ECMOHO start repaying the convertible notes?
What market trend is ECMOHO capitalizing on with this investment?
