Global Pharm Holdings Group, Inc., China-incorporated growing vertically integrated pharmaceutical company engaged in distribution of pharmaceutical-related products through its subsidiaries in Anhui, Jilin and Shandong provinces, announced that in the beginning of August it entered into a share purchase agreement with each of eight shareholders, and completed the acquisition transaction. Pursuant to the acquisition agreement, the sellers agreed to sell and the company agreed to purchase 50,000 ordinary shares in the British Virgin Islands-registered company Pacific Asia Pharm Investment Group Co., Limited, which represents the entire issued share capital of Pacific Asia Pharm.
The consideration for the sale shares is US$42,000,000, to be paid in full by Global Pharm by issuing the consideration shares to the sellers within 90 days after the closing date (as defined under the acquisition agreement). The number of the consideration shares to be issued to the sellers shall be equal to US$42,000,000 divided by the fair market value of Global Pharm's issued and outstanding common stock. With the completion of this acquisition, the BVI company becomes a wholly owned subsidiary of Global Pharm Holdings Group.
On the date of the acquisition agreement, Global Pharm and the sellers also entered into a share pledge agreement pursuant to which the sellers pledge 10% of the consideration shares to Global Pharm.
The BVI-registered Pacific Asia Pharm is the owner of 100% equity interest of Hong Kong Rich Fortune Chain Drugstores Assets Management Co., Ltd., a HK company who owns 100% equity interest of Guangzhou Hairui Xiexin Investment Consulting Co., Ltd.
