Message #29 From:
NewsBot Date: December 4, 2006 03:33:00 PM
CHHH News China Health Holding Executed Letter of Intent to Acquire Xi'an Chunhui Pharmaceuticals
LAS VEGAS--(BUSINESS WIRE)--China Health Holding (OTCBB: CHHH),
a developer, manufacturer, marketer and distributor of pharmaceutical
products and dietary supplements in China and worldwide, announced today
that it has executed a binding acquisition letter of intent to acquire
51% or more ownership of Xi’an Chunhui
Pharmaceuticals Co. Ltd., based in the People’s
Republic of China.
The letter gives China Health first refusal and exclusive rights to
complete the acquisition of Xi’an Chunhui
Pharmaceuticals within 12 months of the execution date (that is, until
November 27, 2007). The completion of the acquisition is subject to
negotiation and execution of a definitive acquisition agreement, as well
as full legal and financial due diligence. The latter includes the
determination of the valuation of Xi’an
Chunhui Pharmaceuticals and the completion and delivery of audited
financial statements of Xi’an Chunhui
Pharmaceuticals according to US General Accepted Accounting Principles
("US GAAP").
Julianna Lu, Founder/CEO of China Health Holdings, commented: “The
acquisition contemplated by the letter of intent with Xi’an
Chunhui Pharmaceuticals is the latest in a series of recent steps China
Health has taken to execute its comprehensive growth strategy. Through
this and other transactions, we are in the process of building a
powerful network of established China-SFDA-certified pharmaceutical drug
manufacturing facilities along with extensive hospital and drugstore
distribution channels in China. We will also have an enhanced pipeline
of hundreds of China-SFDA certified pharmaceutical drugs.”
In addition to the pending Xi’an Chunhui
Pharmaceuticals, China Health has announced several other pending or
completed acquisitions of China-based pharmaceutical firms in recent
months. It has executed letters of intent to acquire 51% or more of
Beijing Boran Pharmaceutical Co. Ltd., Shaanxi Wanan Pharmaceuticals Co.
Ltd.; and Henan Tiankang Pharmaceuticals Co. Ltd and all letters give
China Health legal first refusal and exclusive rights. It has executed “Acquisition
Definitive Agreements” for acquiring 100% of
Shaanxi MeiChen Pharmaceuticals, Ltd. and 60% of Henan Furen
Huaiqingtang Pharmaceuticals Co. Ltd. Also, it has signed a letter of
intent with WangJing Hospital and the WangJing Hospital of China Academy
of Chinese Medical Sciences, in the People’s
Republic of China, to develop the China International University of
Traditional Chinese Medicine and the University Hospital for Traditional
Chinese Medical Sciences.
In the next 12 to 24 months, China Health plans to complete further
acquisitions and transactions with major pharmaceutical companies in the
People’s Republic of China, bringing its
total assets to approximately US$100 million. At the end of this
process, it projects annual gross revenue of approximately US$100
million, with annual net income of approximately US$10 million to US$15
million.
About Xi’an Chunhui Pharmaceuticals
Xi’an Chunhui Pharmaceuticals, based in
Shaanxi Province, is a drug manufacturer, developer and distributor with
good manufacturing practices (GMP) certification from the China State
Food and Drug Administration (China-SFDA). It distributes a total of 50
China-SFDA certified herbal drugs to China-SFDA Licensed Hospitals and
drugstores across Shaanxi province and the People’s
Republic of China. It also owns three China-SFDA certified
pharmaceutical facilities and two China-SFDA certified pharmaceutical
herbal/raw materials cultivation bases with unique advanced technologies.
Xi’an Chunhui Pharmaceuticals’
herbal-based pharmaceutical drugs are used in treatment of cancers (such
as liver and stomach cancer), viral infections, high blood pressure and
cardiovascular disease.
If you would like to be added to China Health's investor email lists or
have additional questions, please contact Haris Tajyar with Investor
Relations International at htajyar@irintl.com,
or/and info@chinahealthholding.com.
About China Health Holding
China Health Holding, Inc. is a developer, manufacturer and marketer of
natural medicinal products and pharmaceutical drugs in China and
worldwide, with extensive expertise in the field of traditional Chinese
medicine and the Chinese pharmaceutical industry. Its immediate goal is
the profitable penetration of the growing global and China
pharmaceutical industry and market through acquisitions of major
pharmaceutical companies in the People’s
Republic of China and worldwide. Its long-term plans include the
development of a pharmaceutical drug pipeline and technology based on
its knowledge of traditional Chinese medicine and the pharmaceutical
industry in the People’s Republic of China.
The company has two wholly-owned subsidiaries. One is China Health World
Pharmaceutical Corporation, which will develop, manufacture and
commercialize natural medications for diseases and conditions related to
diabetes, cardiovascular disease and neurological disorders. The other
subsidiary, China Health World Trade Corporation, will be developing
China Health’s retail/franchise
infrastructure along with worldwide branding, multimedia marketing and
multi-channel distribution to global customers and markets.
China Health controls or owns exclusive worldwide ownership or rights
for a total of 134 proprietary natural herbal medicinal
products/formulas in two natural herbal medicinal product lines: King of
Herbs and Taoist Medicinal. Please feel free to visit www.chinahealthholding.com
for the Company’s profile.
Safe Harbor Statement: To the extent that statements in the
press release are not strictly historical, including statements as to
revenue projections, business strategy, outlook, objectives, future
milestones, plans, intentions, goals, future financial conditions,
future collaboration agreements, the success of the Company's
development, events conditioned on stockholder or other approval, or
otherwise as to future events, such statements are forward looking, all
forward-looking statements, whether written or oral, and whether made by
or on behalf of the Company, are expressly qualified by the cautionary
statements and any other cautionary statements, which may accompany the
forward-looking statements, and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements contained in this release are subject to
certain risks and uncertainties that could cause actual results to
differ materially from the statements made. Other important factors that
could cause actual results to differ materially include the following:
business conditions and the amount of growth in the Company's industry
and general economy; competitive factors; ability to attract and retain
personnel; the price of the Company's stock; and the risk factors set
forth from time to time in the Company's SEC reports, including but not
limited to its annual report on Form 10-KSB; its quarterly reports on
Forms 10-QSB; and any reports on Form 8-K. In addition, the company
disclaims any obligation to update or correct any forward-looking
statements in all of the Company's press releases to reflect events or
circumstances after the date hereof.
