New York, May 18, 2020 (GLOBE NEWSWIRE) -- BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”) today announced that it has entered into a Memorandum of Understanding (“MOU”) to acquire Chongqing Shanfeng Zhiyuan Biotechnology Co., Ltd. (“Chongqing Shanfeng Zhiyuan”) through its wholly-owned subsidiary Beijing Xin Rong Xin Industrial Development Co., Ltd.
Chongqing Shanfeng Zhiyuan is an innovator, manufacturer and supplier of medical devices, disinfection supplies and cosmetics in Southwest China. It has a manufacturing plant covering about 18,298 square feet and has 51 employees including a 6-person R&D team. Chongqing Shanfeng Zhiyuan's products include hand sanitizers, skin care products, antipruritic ointments, hemostatic toothpaste, antimicrobial agents, washing machine cleaners, etc. Its independently-developed drug “Jifukang” is used to prevent and treat diabetic peripheral neuropathy.
Pursuant to the MOU, Beijing Xin Rong Xin Industrial Development plans to purchase 100% of the equity interests of Chongqing Shanfeng Zhiyuan. The purchase price is expected to be calculated based on an appraisal of the fair market value of the acquired company by a third party. A definitive agreement for the Chongqing Shanfeng Zhiyuan acquisition is expected to be entered into within the next 1-2 months. The agreement will be subject to standard closing conditions and approvals, including certain regulatory approvals.
"The acquisition is in line with our expansion strategy, which focuses on deeper penetration of the healthcare market in Southwest China and achieving a wider footprint nationwide," said Mr. Tiewei Song, Chief Executive Officer and President of BOQI International Medical Inc. "We are impressed by the management team and Chongqing Shanfeng Zhiyuan's ability to innovate to serve the evolving needs of its customers. Furthermore, their operating resources and customer network can enhance our market position and accelerate the development of new customer solutions. We look forward to working alongside the team at Chongqing Shanfeng Zhiyuan to drive the continued growth of the company."
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 following efforts led by Mr. Yongquan Bi, the company’s new Chairman, with a renewed focus on the health industry. The company is now transforming from a provider of integrated energy conservation solutions utilizing energy-saving equipment, technical services and energy management re-engineering project operations to a health service provider. BOQI International Medical Inc. offers a broad range of consumer-directed health products and related services, including medical, pharmacy and behavioral health plans.
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