CHH buys $3.1M China manufactuing plant

China Health Holding, a developer, marketer and manufacturer of natural herbal supplement products based on traditional Chinese medicine, has executed a definitive acquisition agreement with Shaanxi MeiChen Pharmaceuticals Co and all of its shareholders to acquire 100% of the issued and outstanding stock of the Chinese State Food and Drug Administration-certified manufacturing firm.

According to the terms of the deal, CHH will pay 24.8 million renminbi ($3.1 million) for 100% of the issued and outstanding stock of SMCP, with the first 80% of the purchase price payable in shares of common stock of CHH based on the average closing price of its common stock as reported on the Over-The-Counter Bulletin Board of the Nasdaq exchange for the five-day period prior to the transaction closing date, and the remaining 20% payable in cash within 30 days after the closing.

SMCP is a Good Manufacturing Procedure-certified drug producer based in Shaanxi, China, which has a total list of 27 Chinese FDA-certified pharmaceutical drugs that are distributed to licensed hospitals and drug stores across Shaanxi province and the whole of the country. The parties have agreed to endeavor to complete the transactions 30 business days from the execution of the deal.