World News: 13:30 GMT Tuesday 14th January 2020. [BOQI International Medical, Inc. via Globe Newswire via SPi World News]
New York, Jan. 14, 2020 (GLOBE NEWSWIRE) -- 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.
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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Globe Newswire: 13:30 GMT Tuesday 14th January 2020
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