XI'AN, China, Sept. 9 /PRNewswire-Asia-FirstCall/ -- Huifeng Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB) ("Huifeng" or the "Company"), specializing in developing and producing botanical extracts and other raw materials for pharmaceuticals and food additives, today announces a definitive agreement under which Huifeng will acquire 90% of the equity ownership of Shangqiu Kexin Rutin Processing Ltd. ("Kexin"), a local leading Rutin manufacturer in Henan Province, at a price of $1.75 million. As a result of the acquisition, Kexin will be a wholly-owned subsidiary of Huifeng.
According to the Acquisition Agreement, the Company will acquire 90% of the equity ownership of Kexin by issuing 2,300,000 restricted shares of the Company's common stock at the basis of $0.7 per share and paying $140,000 in cash to Kexin. The average annual net income of Kexin is expected to be $650,000 in the following three years.
"We are proud to include Kexin as part of the Huifeng family. Kexin has a strong reputation for crude rutin and some high quality rutin series products that deliver value to pharmaceuticals plants and healthcare professionals around the world," said Jing'an Wang, the Chief Executive Officer of Huifeng Bio-Pharmaceutical Technology, Inc. "The experience and technology of Kexin are critical to the development of our markets."
Mr. Wang continued, "With the addition of Kexin's diverse rutin products, Huifeng will be able to offer a full range of rutin series products to our customers, which will definitely leverage Huifeng's brand recognition as the largest Rutin producer in China and a prominent generic pharmaceutical company in many other markets. We believe Kexin will contribute to our long-term success."
Huifeng expects to complete the transaction within one month.
About Shangqiu Kexin Rutin Processing Ltd.
Shangqiu Kexin Rutin Processing Ltd. is a local leading Rutin manufacturer, based in Shangqiu City, Henan Province. Kexin is engaging in developing, manufacturing and distributing rutin series products, such as crude rutin and some high quality rutin series products.
About Huifeng Bio-Pharmaceutical Technology, Inc.
Huifeng Bio-Pharmaceutical Technology, Inc., located in Xi'an, People's Republic of China, develops and produces plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production. It is the leading Chinese producer of rutin and related plant-derived chemicals in a class called flavonoids, with medicinal and other beneficial properties. Founded in 2002, Huifeng uses proprietary patented processes to extract rutin more efficiently than traditional extraction techniques. The Company is diversifying its product lines through internal development, acquisition and cooperation with scientific research organizations. More information can be found on the company's web site at: http://www.hfgb.cn/ .
This press release contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors disclosed in the Company's Annual Report on Form 10K for the year ended Dec. 31, 2009 and all of the Company's subsequent Quarterly Reports on Form 10Q, especially in the "Risk Factors" sections of these reports. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this press release.
For more information, please contact: Investor Relations: NUWA GROUP, LLC. Mr. Kevin Fickle Tel: +1-925-330-8315 Email: Kevin@capitalgc.com Company Contact: Huifeng Bio-Pharmaceutical Technology, Inc. Mr. Steven Tong, IR Director Tel: +86-135-721-18351 Email: Steven@xahuifeng.com
|SOURCE Huifeng Bio-Pharmaceutical Technology, Inc.|
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