Benzinga | Nov 5, 2021 09:36AM EDT

Farmmi Reports Purchase Of Minority Ownership Of Shanghai Jiaoda Onlly For $79.8M

Farmmi, Inc. ("Farmmi" or the "Company") (NASDAQ:FAMI) announced that the Company has agreed to purchase approximately 16% of Shanghai Jiaoda Onlly Co., Ltd. ("Jiaoda Onlly"), a Shanghai Stock Exchange listed company under the ticker 600530.SH, from a major shareholder. Jiaoda Onlly operates elderly care institutions and engages in the research and development production and sale of health food. Farmmi, through its subsidiary Zhejiang Yitang Medical Service Co., Ltd. ("Yitang Medical"), purchase the shares of Jiaoda Onlly from China Capital Investment (Group) Co., Ltd. (CCIG) and related companies for approximately RMB 509 million (approximately US$79.8 million). Following the purchase, Yitang Medical will be the second largest shareholder of Jiaoda Onlly, marking Farmmi's entrance into China's medical and health industry.



Jiaoda Onlly (600530.SH) is one of the largest elderly care and rehabilitation institution listed in China, currently operating 14 nursing and rehabilitation institutions primarily located in Shanghai, Jiangsu and Zhejiang, with capacity of nearly 4,000 beds. With revenue reaching approximately RMB 333 million (approximately US$52.1 million) the fiscal year 2020, Jiaoda Onlly is committed to becoming the largest medical care enterprise in Asia. In addition, Jiaoda Onlly's fast growing health food business has 31 health food approval numbers and 16 invention patents, covering a full range of products from dietary supplements and traditional tonics to functional products for heart protection, hypoglycemic conditions and more.