China Aoxing Pharmaceuticals said, its subsidiary Hebei Aoxing Pharmaceuticals has signed a definitive acquisition agreement to acquire Lerentang Pharmaceutical (LRT). LRT is specializing in the manufacturing and distribution of modernized Chinese traditional medicines, with a strong portfolio of pain management products.
The definitive acquisition agreement contemplates that China Aoxing will acquire 100 percent ownership of LRT. The purchase price will be paid approximately $10.8 million in cash and 8 million shares of the company's common stock. Completion of the transaction is expected to occur within the next three months. Completion, however, is subject to a number of conditions, including the receipt of approval from the Chinese government.
China Aoxing Pharmaceuticals is specializing in research, development, manufacturing and distribution of a variety of narcotics and pain management products. The company has the largest product pipeline and largest manufacturing facility (1.2 million sq. ft.) for highly regulated narcotic medicines, addressing a very under-served and fast growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines.