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Enables Entrance to U.S. Healthcare Market Immediately;
Creates Synergies with Existing Products and Increase Competitive Advantage |
HONG KONG, Mar 6, 2017 - (ACN Newswire) - PuraPharm Corporation Limited ("PuraPharm" or the "Group", HKEX: 1498), a leading Hong Kong-based Chinese medicine company specialising in the research and development, production and sale of Concentrated Chinese Medicine Granules ("CCMG") products under the "Nong"s" brand, has announced that its indirect wholly-owned subsidiary has entered into a Stock Purchase Agreement on 3 March 2017 to acquire all the issued and outstanding share capital of K'An Herb Company Inc. ("K'An Herb"), a company principally engaged in manufacturing of Chinese herbal formulas in the U.S. and sales to distributors and healthcare practitioners in the U.S. and Europe. The total consideration of US$5,400,000 (equivalent to approximately HK$41,850,000) will be satisfied in cash and shall be funded by internal resources of the Group.
K'An Herb is well established in the U.S. with stable financial conditions and customer base consisted of a network of registered healthcare practitioners and their patients. Upon completion of the acquisition, K'An Herb will become the Group's indirect wholly-owned subsidiary with its financial results consolidated into the consolidated financial statements of the Group.
The acquisition will provide PuraPharm a cost and time effective way to enter the U.S. market. Moreover, it can create synergies with the Group's existing products and expand the products portfolio of its Chinese medicine products, which will increase its competitive advantage in the market. The acquisition also presents an excellent opportunity for the Group to leverage on the expertise, resources, and sale network of K'An Herb to develop its business in the U.S. market immediately.
Mr. Abraham Chan, Founder, Chairman, Chief Executive Officer and Executive Director of PuraPharm, said, "I am pleased and excited to announce the strategic acquisition of the healthcare products company in the U.S., which is in line with PuraPharm's core value of Chinese medicine modernised and internationalised. The acquisition will enable us to expand our operation in the market, which in turn will become an important growth driver. Looking ahead, we will continue to promote modernisation and internationalisation of Chinese Medicine and enhance the brand awareness of both PuraPharm and Nong's to capture the huge demand for Chinese medicine at home and abroad."
Contact:
Strategic Financial Relations Limited
Heidi So +852 2864 4826 heidi.so@sprg.com.hk
Fanny Yuen +852 2864 4853 fanny.yuen@sprg.com.hk
Janet Fong +852 2864 4817 janet.fong@sprg.com.hk
www.sprg.com.hk
Topic: Press release summary
Source: PuraPharm Corporation Limited
Sectors: Food & Beverage, Daily News, Healthcare & Pharm
https://www.acnnewswire.com
From the Asia Corporate News Network
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