Benzinga | Aug 2, 2021 07:15AM EDT

BIMI International Medical Inc. Enters Into A MOU To Acquire Chongqing Zhuoda Pharmaceutical Co, Ltd. For $3/Share

BIMI International Medical Inc. (NASDAQ:BIMI) ("BIMI" or the "Company"), a leading healthcare products and services provider in China, today announced the signing of a Memorandum of Understanding ("MOU") on July 30, 2021 to acquire Chongqing Zhuoda Pharmaceutical Co, Ltd.("Zhuoda").



Pursuant to the MOU, BIMI and the owners of Zhouda have agreed to sign a stock purchase agreement ("Agreement") after completing the relevant assessment and evaluation of Zhuoda. Upon signing the Agreement, the Company will pay a portion of the consideration in BIMI's common shares valued at a price of $3.00 per share. The remainder of the consideration will be subject to post-closing adjustments based on the performance of Zhuoda for the first two calendar years after the closing of the transaction.



Zhuoda, which was established in 2009, is a wholesale supplier of pharmaceuticals and medical equipment, including over 1,220 pharmaceutical products, thousands of Chinese herbal medicines and more than 50 types of medical equipment. It also has relationships with a number of international medical device manufactures such as GE and Philips, and large domestic medical manufacturers such as LEPU Medical and Landwind Medical.

"Zhuoda's large customer base and operational resources will position us for what we expect to be an accelerated path to continued revenue growth and future profitability,"" said Mr. Tiewei Song, Chief Executive Officer and President of the Company. "The combination of Zhuoda with the BIMI's current business increases our footprint in an attractive healthcare market. We look forward to closing the transaction and continuing to move forward with our growth plans," concluded Mr. Song.