Benzinga | Dec 15, 2020 08:31AM EST

BOQI International Medical Signs Stock Purchase Agreement To Acquire Chongqing Cogmer Biology Technology Co., Ltd.; BOQI Will Purchase All Issued Outstanding Equity Interests In Cogmer Of ~$17,737,000

New York, Dec. 15, 2020 (GLOBE NEWSWIRE) -- BOQI International Medical Inc. (NASDAQ:BIMI) ("BIMI" or the "Company") today announced that it has signed a Stock Purchase Agreement (the "Agreement") on December 14, 2020, to acquire Chongqing Cogmer Biology Technology Co., Ltd. ("Cogmer"), a distributor of medical devices including in vitro diagnostic devices. Cogmer is focused on sales to hospitals and sub-distributors in the southwest region of China.

Pursuant to the Agreement, the Company will purchase all the issued and outstanding equity interests in Cogmer (the "Shares") in consideration of RMB 116,000,000 (approximately $17,737,000). RMB 20,000,000 (approximately US$3,048,780) will be delivered in cash at the closing and 2,000,000 shares of common stock of the Company valued at RMB 40,000,000 (approximately US$6,097,560) will be delivered within 90 days of closing. The balance of the purchase price of RMB 56,000,000 (approximately US$8,562,691) is subject to post-closing adjustments based on the performance of Cogmer in 2021 and 2022.

"The acquisition of Cogmer allows us to introduce a new product line, wholesale in vitro diagnostic products. We believe that this new product line will enrich and supplement our wholesale portfolio and complement our medical devices and medicine product lines," said Mr. Tiewei Song, Chief Executive Officer and President of BOQI International Medical Inc. "Cogmer has strong distribution channels in southwest China and the authorization to sell the SARS-CoV-2 detection kit. We believe that this acquisition will enhance our revenue growth and benefit our investors."