HARBIN, China, April 24 /Xinhua-PRNewswire-FirstCall/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (OTC Bulletin Board: CSKI), a pharmaceutical company for external use over-the-counter drugs in the People's Republic of China ("PRC"), today announced it acquired Heilongjiang Haina Pharmaceutical Inc. ("Haina Pharmaceutical"), a recently formed corporation organized under the laws of the PRC on April 18, 2008.
China Sky One Medical, Inc., through its indirect wholly owned subsidiary Harbin Tian Di Ren Medical Science and Technology Company ("TDR"), consummated a transaction pursuant to an Equity Transfer Agreement with Heilongjiang Haina Pharmaceutical Inc., licensed as a wholesaler of traditional Chinese medicine, bio-medicines, bio-products, medicinal devices, antibiotics and chemical medicines.
Pursuant to the Equity Transfer Agreement, Harbin acquired 100% of the issued and outstanding capital stock of Haina Pharmaceutical from its three stockholders in consideration for payment of 3,000,000 RMB (approximately $428,571). TDR has been overseeing the operations of Haina Pharmaceutical since January 2008 as part of its due diligence prior to closing of this acquisition.
Haina Pharmaceutical does not have an established sales network and was acquired for its primary asset, a Good Supply Practice (GSP) license issued as of December 21, 2006 by the Heilongjiang office of the SFDA, and will expire on January 29, 2012. The SFDA recently started issuing such licenses to resellers of medicines in order to maintain certain quality controls. The GSP license enables China Sky One Medical to expand its sales of medicinal products without having to go through a lengthy license application process.
"We are pleased to complete the acquisition of Haina Pharmaceutical. By
obtaining the GSP license, we now have the ability to further develop our
sales channels in a timely manner," said Mr. Yan-qing Liu, Chairman, CEO
|SOURCE China Sky One Medical, Inc.|
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