China Health Holding, a developer, manufacturer, marketer and distributor of pharmaceutical products and dietary supplements in China and worldwide, announced that it has executed a binding acquisition letter of intent to acquire 51% or more ownership of Xi'an Chunhui Pharmaceuticals Co. Ltd., based in the People's Republic of China.
The letter gives China Health first refusal and exclusive rights to complete the acquisition of Xi'an Chunhui Pharmaceuticals within 12 months of the execution date (that is, until November 27, 2007). The completion of the acquisition is subject to negotiation and execution of a definitive acquisition agreement, as well as full legal and financial due diligence. The latter includes the determination of the valuation of Xi'an Chunhui Pharmaceuticals and the completion and delivery of audited financial statements of Xi'an Chunhui Pharmaceuticals according to US General Accepted Accounting Principles.
In addition to the pending Xi'an Chunhui Pharmaceuticals, China Health has announced several other pending or completed acquisitions of China-based pharmaceutical firms in recent months. It has executed letters of intent to acquire 51% or more of Beijing Boran Pharmaceutical Co. Ltd., Shaanxi Wanan Pharmaceuticals Co. Ltd.; and Henan Tiankang Pharmaceuticals Co. Ltd and all letters give China Health legal first refusal and exclusive rights.
It has executed "Acquisition Definitive Agreements" for acquiring 100% of Shaanxi MeiChen Pharmaceuticals, Ltd. and 60% of Henan Furen Huaiqingtang Pharmaceuticals Co. Ltd. Also, it has signed a letter of intent with WangJing Hospital and the WangJing Hospital of China Academy of Chinese Medical Sciences, in the People's Republic of China, to develop the China International University of Traditional Chinese Medicine and the University Hospital for Traditional Chinese Medical Sciences.
In the next 12 to 24 months, China Health plans to complete further acquisitions and transactions with major pharmaceutical companies in the People's Republic of China, bringing its total assets to approximately US$100 million. At the end of this process, it projects annual gross revenue of approximately US$100 million, with annual net income of approximately US$10 million to US$15 million.
Source:佚名