BOQI International Medical Renegotiates Purchase Price For Boqi Zhengji Pharmacy Chain Co., Ltd.
15 January 2020 - 12:30AM
BOQI International Medical Inc., previously known as NF Energy
Saving Corporation (NASDAQ: BIMI) (“BIMI” or the “Company”) today
announced that on Jan. 13, 2020, it had signed a Memorandum of
Understanding (“MOU”) with Lasting Wisdom Holdings Limited’s former
shareholders Yu Zhang, Yunpeng Liu, Aiguo Leng, Xiaona Liu, and
Peng Zhao to renegotiate purchase price for Boqi Zhengji Pharmacy
Chain Co., Ltd. (“Boqi Zhengji Pharmacy Chain”) to reduce the cost
of the acquisition.
According to the existing purchase agreement signed on April 11,
2019, the aggregate purchase price for the shares of Boqi Zhengji
Pharmacy Chain (or Boqi Zhengji Pharmacy Chain’s parent) consists
of a cash consideration of USD 5,643,181 (RMB 40,000,000) and
1,500,000 shares of common stock of the Company. The purchase price
is based on an initial appraisal of the fair market value of the
acquired company and is subject to post-closing adjustments. On
October 14, 2019, the Company announced that the acquisition was
closed. The cash portion of the consideration has not been paid as
of Jan. 13, 2020.
As shown in the unaudited financial statements for Lasting
Wisdom Holdings Limited, the net loss for the nine-month periods
ended September 30, 2019, was USD 1,469,586, which may influence
the appraisal of the fair market value of the acquired company. To
better reflect the fair market value of the acquired company and
reduce the cost of the acquisition, BOQI International
Medical signed the MOU with Lasting Wisdom Holdings Limited’s
former shareholders to renegotiate the purchase price.
According to the MOU, BOQI International Medical and Lasting
Wisdom Holdings Limited’s former shareholders are going to
negotiate a supplemental agreement to their existing purchase
agreement shortly. Under the supplemental agreement, the price
adjustment mechanism in the existing agreement is expected to be
modified. The cash portion of the consideration is expected to be
recalculated based on Boqi Zhengji Pharmacy Chain’s financial
statements in the future and an updated appraisal of the fair
market value of the acquired company by a third party. The payment
terms of the cash portion are also subject to adjustments. Other
terms of the existing purchase agreement remain effective and Boqi
Zhengji Pharmacy Chain still operates as a wholly-owned subsidiary
of BOQI International Medical.
About BOQI International Medical Inc.
BOQI International Medical Inc. (formerly known as NF Energy
Saving Corporation) (NASDAQ: BIMI) was founded in 2006. In February
2019, the Board of Directors of the company was reorganized
following efforts led by Mr. Yongquan Bi, the company’s new
Chairman, with a renewed focus on the health industry. The company
is now transforming from a provider of integrated energy
conservation solutions utilizing energy-saving equipment, technical
services and energy management re-engineering project operations to
a medical and health service provider. The Company has
approximately 300 retail locations and a pharmacy benefits system
with more than 30,000 members. The pharmacies owned by BOQI
International Medical Inc. typically sell about 6,000 types of
drugs, of which more than 600 are under exclusive sales
arrangements. BOQI International Medical Inc. offers a broad range
of consumer-directed health products and related services,
including medical, pharmacy and behavioral health plans, chronic
disease management services, and health information technology
products and services. BOQI International Medical Inc. is
community-based and locally focused, engaging consumers with more
affordable, accessible, simple and seamless care they need when and
where they need it.
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revisions to these forward-looking statements to take into account
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IR Contact:Dragon Gate Investment Partners
LLCTel: +1(646)-801-2803Email: BIMI@dgipl.com
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