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germoney2

02/27/12 5:18 AM

#2256 RE: Majobuki #2255

the financial benefit is hard to describe without any HBRM-figures.Let us try:
> I assume HBRM as an non-filing company is valued quite low( as CHRI is as well), so a takeover could raise the valuation-levels of CHRI and HBRM in the market with some supporting PR.
>Medium term an upgrade to a higher market segment would be achievable.
>In 2010 HBRM had an operating profit of about 9 mln USD, combined with CHRI that could lead to a higher critical mass and perhaps as well synergies in sourcing or production (both are producing in China).
>but: we do not know possible diluting effects( or additional earnings contributed by HBRM), if the takeover-price will be substantial. CHRI stated there are more targets to come.

strategical arguments for the longer term:
>market entry in US with proven online-plattform and distributor network in place ( ideal scalable platform for the future)
>management with US-reputation and experience in clinical and registration processes in the US.
>new,additional product pipeline

short-term-effects depend largely on the strucutre and pricing of the deal, but we will surely have an increased level of awareness and new investors looking at CHRI and its valuations.

I thinks it is really a clever move, short and long term, if they do not overpay