Benzinga | Dec 9, 2020 08:32AM EST

BOQI International Medical Enters Into Stock Purchase Agreement To Acquire Chongqing Guoyitang Hospital; Co. Will Purchase All Issued And Outstanding Equity Interests In Guoyitang For ~$15.244M

New York, Dec. 09, 2020 (GLOBE NEWSWIRE) -- BOQI International Medical Inc. (NASDAQ:BIMI) ("BIMI" or the "Company") today announced that it has entered into a Stock Purchase Agreement (the "Agreement") on December 7, 2020, to acquire Chongqing Guoyitang Hospital ("Guoyitang"), the owner and operator of a private general hospital in Chongqing City, a southwest city of China, with 100 hospital beds, 53 medical doctors, 40 medical technicians, 50 nurses and 57 administrative employees.

Pursuant to the Agreement, BIMI will purchase all the issued and outstanding equity interests in Guoyitang. The aggregate purchase price for Guoyitang is US$15,243,902 (RMB 100,000,000). Upon signing the Agreement, 2,000,000 shares of common stock of BIMI and approximately US$3,048,780 (RMB 20,000,000) will be paid as partial consideration for the purchase of Guoyitang. The balance of the purchase price in the amount of approximately US$6,097,560 (RMB 40,000,000) is subject to post-closing adjustments based on the performance of Guoyitang in 2021 and 2022.

"The acquisition of Guoyitang will allow us to accelerate our online-to-offline strategy," said Mr. Tiewei Song, Chief Executive Officer and President of BOQI International Medical Inc. "BIMI's medical supply chain can support Guoyitang with higher operational efficiency, while Guoyitang can provide comprehensive medical services to supplement BIMI's offline businesses. We intend to create a hospital chain for obstetrics and gynecology and plan to acquire more specialty hospitals. We believe that this acquisition can further expand our healthcare services and create more value for our investors."