Great news for CHHH
An actual completed Acquisition completed
Jan 8, 2007 10:08:00 (ET)
LAS VEGAS, Jan 08, 2007 /Xinhua-PRNewswire-FirstCall via COMTEX/ -- China Health Holding, Inc. (CHHH, Trade ), a development stage company with the goal of becoming a developer, manufacturer, marketer and distributor of pharmaceutical products and dietary supplements in China and worldwide, announced today that it has executed an acquisition definitive agreement to acquire all of the assets of Xi'An Meichen Pharmaceutical Co. Ltd., based in the People's Republic of China.
Under the agreement, China Health would acquire Xi' An Meichen's new pharmaceutical manufacturing facilities - all certified for Good Manufacturing Practices (GMP) by the China State Food and Drug Administration ("China-SFDA") -- along with 43 China-SFDA certified pharmaceutical drugs. China Health also will acquire real estate property totaling about 16,000 square meters.
As consideration, China Health will issue 20,000,000 common shares of its restricted common stock and pay approximately US$$1,530,000 in cash to Xi'An Meichen. The conditions of closing, include, but are not limited to, the satisfactory completion of due diligence by the parties and the approval of the transaction by the shareholders holding 100% of the ownership interest of Xi'An Meichen.
Julianna Lu, Founder/CEO of China Health Holding, commented: "The acquisition contemplated by this agreement with Xi'An MeiChen Pharmaceuticals is the latest in a series of recent steps that China Health has taken to execute its ambitious comprehensive growth strategy and targets. Through this and other transactions, we are in the process of building a powerful network of established China-SFDA-certified pharmaceutical drug manufacturing facilities along with extensive hospital and drugstore distribution channels in China. We intend to also have an enhanced pipeline of hundreds of China-SFDA certified pharmaceutical drugs."
In addition to the pending Xi'An MeiChen acquisition, China Health has announced several other pending or completed acquisitions of Chinese based pharmaceutical companies in recent months. It has executed binding letters of intent to acquire 51% or more of Beijing Boran Pharmaceutical Co. Ltd., Shaanxi Wanan Pharmaceutical Co. Ltd., Xi'An Chunhui Pharmaceutical and Henan Tiankang Pharmaceutical Co. Ltd. All these letters give it legal first refusal and exclusive rights. China Health is currently conducting due diligence and acquisition transactions in connection with these pending acquisitions.
It has also executed definitive agreements for acquiring 60% of Henan Furen Huaiqingtang Pharmaceutical Co. Ltd. and 100% of Shaanxi MeiChen Pharmaceutical, Ltd. It has signed a letter of intent with WangJing Hospital and the WangJing Hospital of China Academy of Chinese Medical Sciences, 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 and worldwide, bringing its total assets to approximately US$100 million. At the end of this process, it expects internal growth and projects annual gross revenue of approximately US$100 million, with annual net income of approximately US$10 million to US$15 million.
About Xi'An Meichen Pharmaceutical
Xi'An Meichen Pharmaceutical, based in the Shaanxi Province of the People's Republic of China, is a drug manufacturer, developer and distributor with good manufacturing practices (GMP) certification from the China State Food and Drug Administration (China-SFDA). It manufactures and distributes a total of 43 China-SFDA certified herbal-based drugs and chemical-based drugs to China-SFDA licensed hospitals and drugstores across Shaanxi province and the People's Republic of China. It owns a new, 16,000-square-meter China-SFDA certified pharmaceutical facility with the capacity to produce herbal and chemical drugs in a number of forms -- abstraction, pills, granules, capsules (soft and hard), powders, drops, etc... It also owns one China-SFDA certified pharmaceutical herbal/raw materials cultivation base.
Xi'an Meichen's Pharmaceutical's herbal based and chemical-based pharmaceutical drugs are used in treatment of cardio-cerebral vascular disease, stomach disease, conjunctivitis, acute and chronic gastritis, gastric ulcer, erosive gastritis, duodenal ulcer, gastric hemorrhage, bronchial asthma, asthmatic bronchitis, insomnia headache and fever
