American Oriental Bioengineering Enters Into a Letter-of-Intent to Acquire Established Plant Based Pharmaceutical Company
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NEW YORK, June 13 /-- American Oriental Bioengineering (NYSE:AOB) announced today the signing of a letter of intent to acquire Changchun Xinan Pharmaceutical Group Company Limited (CCXA), a privately owned plant based pharmaceutical company in a transaction the company expects not to exceed US$30 million. Pursuant to the terms of the letter of intent, AOB has 90 days to enter into a definitive purchase agreement and close the transaction with CCXA. The company anticipates the consideration for the acquisition will be all in cash.
CCXA is located in the Jilin province and owns a portfolio of plant based products, including both prescription and over-the-counter pharmaceutical products, marketed in China. Among CCXA's assets is a set of women's health products which the company believes are complementary to its current product portfolio and GMP certified manufacturing facilities which can produce different product formulations including capsules and injectables. Based on the unaudited financial statements, CCXA was profitable for its 2006 fiscal year.
AOB believes that this transaction, if completed, is consistent with its acquisition strategy to acquire companies that are accretive to its operations within one year of closing and provides a strategic fit with the company's existing business. This transaction is subject to the parties entering into a definitive agreement, including a price that will be subject to customary closing conditions.
About American Oriental Bioengineering, Inc.
American Oriental Bioengineering is a leading, fully integrated, plant based pharmaceutical and plant based nutraceutical company dedicated to improving health through the development, manufacture and commercialization of modernized plant based products in China.
Source: American Oriental Bioengineering
CONTACT:Wilfred Chow, SVP Finance, of American Oriental Bioengineering,
+1-212-786-7568; Bill Zima & Ashley Ammon MacFarlane, Integrated
+Corporate
Relations, Inc., +1-203-682-8200, for American Oriental Bioengineering
