Genor Biopharma acquires Yiteng Pharma
Jiahe Biology announced that it will acquire Yiteng Pharmaceutical Group through a merger, with Yiteng Pharmaceutical becoming a wholly-owned subsidiary of Jiahe Biology. Jiahe Biology will issue 1.821 billion shares of consideration shares to Yiteng Pharmaceutical shareholders, causing the stock price to soar by 41.8% to 2.34 yuan after resumption of trading. This merger is expected to bring synergies and lay the foundation for the company's sustainable development. The board of directors recommends changing the company name and increasing shares to implement the merger
Genor Biopharma (06998) announced that it will acquire Yiteng Pharmaceutical Group through a merger. Upon the effectiveness of the merger, GenEdd, a wholly-owned subsidiary of the company, will be merged into Yiteng Pharmaceutical Group, which will continue to exist as a wholly-owned subsidiary of the company. Genor Biopharma will distribute and issue a total of 1.821 billion shares of consideration shares to the shareholders of Yiteng Pharmaceutical Group. Genor Biopharma resumed trading yesterday, with its stock price soaring by 41.8% and closing at HKD 2.34.
Stock Price Soars by 42% Upon Resumption of Trading
In fact, the distribution and issuance of 1.821 billion consideration shares this time is equivalent to 350.27% of Genor Biopharma's current share capital, representing approximately 77.43% of the expanded share capital. The theoretical issue price per share of consideration shares is HKD 2.899, which is a premium of 75.7% over the closing price of HKD 1.65 on the last trading day.
Genor Biopharma stated that the proposed merger is a crucial step for the company towards a mature and fully integrated biopharmaceutical company. It is expected to bring complementary and synergistic effects to the group and Yiteng Pharmaceutical, laying a solid foundation for sustainable development after the completion of the merger.
The board of directors proposed that after the effective date of the merger, the company's English name be changed from "Genor Biopharma Holdings Limited" to "Edding Genor Group Holdings Limited," and the company's dual foreign Chinese name be changed from "Genor Biopharma Holdings Limited" to "Yiteng Genor Pharmaceutical Group Limited." To implement the proposed merger, the board of directors recommended increasing the share capital by 20 billion shares, increasing the company's authorized share capital from USD 20,000 (divided into 10 billion shares) to USD 60,000 (divided into 30 billion shares)
