AOBO entered into an acquisition agreement to acquire Nuo Hua for approximately $39.5 million in cash after terminating a previously announced, non-binding Letter of Intent to acquire another company in the distribution industry in China. Management believes that acquiring Nuo Hua instead of the other company was a more efficient use of cash, allowed AOBO to acquire compelling distribution assets at a lower price, and also allowed AOBO to conserve cash for future acquisitions and growth plans.
GuangXi HuiKe Research and Development Company Ltd.
GuangXi HuiKe ("GHK") is engaged in pharmaceutical research and product development leading to SFDA approval and expedient product launches in China. The Company employs 22 professionals and provides research and development through innovative technology, raw material selection, extraction and production of pharmaceutical products. The Company also has a dedicated focus on navigating the new drug approval and launch process in China, and has completed over 60 development projects over the past few years, including obtaining new drug production licenses, approvals for clinical trials, and technology patents. AOBO acquired GHK for $13.6 million in cash.
The monetary exchange rate used for these transactions was US$1.00: RMB 6.83.
The Company will hold a conference call at 8:00 am ET (8:00 pm China
Time) on Wednesday, October 22, 2008, to discuss the acquisitions of Nuo
Hua and GHK. Listeners may access the call by dialing the following
numbers: United States toll free: +1-866-316-1368, International:
+1-913-312-0845, Northern China toll free: +10-800-714-0970, Southern China
toll free: +10-800-140-0945. A webcast will also be available on the
Company's website at http://www.bioaobo.com . A replay of the call will be
available through October 29, 2008. Listeners may access the replay by
dialing 1-888-203-1112 or 1-719
|SOURCE American Oriental Bioengineering, Inc.|
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