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news.China Biopharmaceuticals and the shareholders of Suzhou Hengyi Pharmaceuticals have agreed to rescind and terminate the agreement under which China Biopharmaceuticals acquired 75.8% of the ownership interest of Hengyi.
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The consideration of 1,200,000 shares of China Biopharmaceuticals common stock and the additional capital contribution of $620,000 will be returned to China Biopharmaceuticlas and the company will have no further obligations to Hengyi or its shareholders. The 75.8% ownership interest of Hengyi will be returned to its shareholders, and Hengyi will no longer be a subsidiary of China Bipharmaceuticals.
“Based on our evaluation of Hengyi’s performance, we have determined that Hengyi does not fit into our future growth strategy. We have negotiated a successful exit out of Hengyi’s line of raw material products due to low profit margins and limited complementarity to our expanded drug manufacturing activities,” stated Chris Mao, CHBP CEO.
“This will also make room for future acquisitions in the field of raw materials and intermediaries with superior product lines and more complementary products for our recently updated and expanded downstream manufacture operations,” he continued.