China Renji Medical (HKG:0648) has agreed to acquire the entire issued share capital of target company Huge Live Holdings Ltd. at a consideration of HK$180 million, which will be satisfied entirely by the issue of a promissory note. Bearing an interest rate of 5% per annum on the principal amount, the promissory note will mature on 31 March 2014.

As a condition precedent of the acquisition agreement, the target company is required to complete a reorganisation such that the target group will own the entire interest in the design and distribution of air purifiers using patented nano technology business which commenced in 2010 with (i) audited profit before and after tax of approximately HK$13.5 million and HK$10.1 million for the year ended 31 December 2010, respectively; and (ii) audited net asset value of approximately HK$18.1 million as at 31 December 2010.

Trading in the shares of China Renji Medical remains suspended until further notice.