Under the terms of the agreement, China Sky One Medical’s wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company, will acquire 100% of Tianlong’s operations for a cash payment $8 million and approximately $300,000 of China Sky One Medical’s common shares.
In exchange, China Sky One Medical will obtain Tianlong’s $8.3 million in assets, which include $0.5 million in inventory, land use rights, GMP-certified manufacturing facilities, state-of-the-art production equipment, a R&D center, a portfolio of 69 approved drugs (in 98 forms) and a pipeline of 38 new drugs, all of which have been submitted to the SFDA for approval. The acquisition is expected to close on or before March 31, 2008.