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news.AMDL has announced that a letter of intent has been signed between Guangzhou Lazon Pharmacy, a Hong Kong company, and Jade Pharmaceutical, the wholly owned subsidiary of AMDL, that holds sole ownership of two China based pharmaceutical companies - Jiangxi Shangrao Kangda Pharmacy and Yangbian Yiqiao Biochemistry Pharmacy.
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Based upon recent meetings in Shenzhen, China, it is anticipated that Jade Pharmaceutical (JPI) and Guangzhou Lazon Pharmacy (GLP) will work towards completing the acquisition of GLP by JPI and, as an interim step, GLP and JPI shall enter into a distribution agreement for JPI pharmaceutical products.
As part of the definitive agreement it is anticipated that JPI, JJB and Yangbian Yiqiao Biochemistry Pharmacy (YYB) would consolidate their sales forces under GLP. JPI, JJB and or YYB and GLP shall immediately begin working on one or more distribution agreements for the sales and distribution of JJB and or YYB’s products by GLP. Subject to due diligence by JPI and other conditions and upon completing a definitive purchase agreement, a closing of the transaction can take place wherein, 100% ownership in GLP will be transferred to JPI.
The parties will agree amongst other things to hire and split the costs (50/50) a mutually agreed to valuation company to perform a valuation analysis to determine the value of GLP. Based upon that analysis and respectful negotiations between JPI and GLP, an acquisition price will be determined. Based upon this acquisition price, acquisition consideration can be allocated that may include – cash, the common stock of AMDL and or stock options for AMDL’s common stock.