Monday, January 11, 2010

Link Resources, Inc. acquires BVI-registered parent company of Bohai Pharmaceuticals

Nevada-based company Link Resources, Inc. completed share exchange transaction and US$12 million private placement pursuant to which it acquired the parent company of Yantai Bohai Pharmaceuticals Group Co., Ltd. Under the terms of the share exchange transaction, the shareholders of Chance High International Limited, Bohai's indirect parent company registered in the British Virgin Islands, exchanged all of their BVI company's equity for 13,162,500 shares of Link Resources, representing approximately 81% of its outstanding shares. Now Chance High is a directly held, wholly-owned subsidiary of Link.

In the private placement Link issued 6,000,000 units at a price of $2 per unit, resulting in gross proceeds of $12,000,000. Net proceeds to Link made approximately $9,700,000. Each unit consists of $2 principal amount, two year convertible note and a three year warrant to purchase one share of Link common stock at $2.40 per share.

Assuming full conversion of the notes and exercise of the warrants, offering investors would own approximately 26.9% of the outstanding shares of Link and the former shareholders of BVI-registered Chance High, would own approximately 59.2% of the outstanding shares of the US company. Another British Virgin Islands-registered company, Glory Period Limited, which is a shareholder of Chance High, would become the owner of approximately 40% the outstanding shares of Link assuming full conversion of the notes and exercise of the warrants.

Yantai Bohai Pharmaceuticals is located in Shandong Province, China, and engaged in the production, manufacturing and distribution of traditional Chinese herbal medicines.