Benzinga | Oct 23, 2020 08:32AM EDT

BOQI International Medical Inc. Enters Into MOU To Acquire Chongqing Guoyitang Hospital; Terms Not Disclosed

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.