BEIJING, July 27, 2020 (GLOBE NEWSWIRE) -- Shineco, Inc. ("Shineco" or the "Company"; Nasdaq: TYHT), a producer and distributor of Chinese herbal medicines, organic agricultural and hemp products, as well as various health and well-being-focused plant-based products in China, announced today that the Company has entered into a non-binding letter of intent (the “Letter of Intent”) to acquire controlling interest in Changzhou Biowin Pharmaceutical Co., Ltd (“CBP”), a Chinese biotechnology company focusing on on-site diagnostic product R & D and high-tech biomedical products manufacturing, to step into the market of COVID-19 nucleic acid detection.
Shineco signed the non-binding Letter of Intent with Beijing Kanghuayuan Technology Development Co., Ltd and Changzhou Kelinbo Venture Capital Partnership (limited partnership) on July 21, 2020. Pursuant to the non-binding Letter of Intent, Shineco proposed to acquire 73.7% ownership of CBP by issuing common shares worth no more than USD25 million.
CBP’s R&D team successfully developed “novel coronavirus (COVID-19) IgG/IgM antibody test kit (colloidal gold)”, “novel coronavirus (COVID-19) nucleic acid test kit (fluorescence RT-PCR)” and “novel coronavirus (COVID-19) nucleic acid test kit (RT-LAMP)”. To address the challenges the world faces amid efforts to contain COVID-19, the CBP developed a combination of the novel coronavirus (COVID-19) nucleic acid test kit (RT-LAMP) with an easy-taken sampling technology. Through this combination, individuals can take the nucleic acid testing at home by themselves and get the accurate result. This allows people to take the test without risking going to hospitals or nucleic acid sampling station where there is a chance of getting in contact with the novel coronavirus. Through the introduction and promotion of the technology, it is expected to help governments to discover COVID-19 patients and asymptomatic carriers quickly, thus saving medical resources. It makes rapid group testing possible, and is especially suitable for screening in communities, construction sites, supermarkets, shopping malls, theaters, schools, and companies. It is expected to take only two hours to get accurate testing results of a group people using the specific sampling products that CBP produced and would only cost RMB 1,000 at most Currently CBP has developed 3 nucleic acid testing products, novel coronavirus (COVID-19)IgG/IgM antibody test kit (colloidal gold) has already received the CE certification, and novel coronavirus (COVID-19) nucleic acid test kit (fluorescence RT-PCR)，“novel coronavirus (COVID-19) nucleic acid test kit (RT-LAMP) are applying for this process.
Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, commented, “We view this potential acquisition of CBP as a great opportunity and a key growth driver for Shineco. Currently, one of the best ways to detect COVID-19 infection is by taking nucleic acid test and CBP’s technology can achieve rapid nucleic acid testing, allowing customers to complete all procedures at home from collecting sample to having result. We believe this acquisition can expand our business, increase our revenue and profits, and create long-term value for our shareholders.”
Completion of the transaction is subject to, among other matters, the completion of due diligence, the negotiation of a definitive agreement providing for the transaction, satisfaction of the conditions negotiated therein and approval of the transaction by the Company's board of directors. Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.
About Changzhou Biowin Pharmaceutical Co., Ltd
Established in Changzhou, China in 2012, Changzhou Biowin Pharmaceutical Co., Ltd is focusing on the R&D, manufacture and distribution of point-of-care diagnostic test kits (POCT). The Company currently has 33 products with marketing approval in vitro diagnostic, 12 Chinese patents, and 28 Chinese patent applications, covering a variety of diseases including heart disease, infectious diseases, stroke, kidney function, diabetes, cancer and bone metabolism disorders, etc. The Company has the well-established in vitro diagnostic research and development laboratory and five technology platforms， and a rapid response system for the development of emergency-use diagnostic product. For more information, please visit http://www.czbiowin.com/.
About Shineco, Inc.
Incorporated in Delaware in August 1997 and headquartered in Beijing, China, Shineco is a holding company. Through its subsidiaries and variable interest entities, Shineco undertakes vertically- and horizontally-integrated production, distribution, and sales channels to provide health and well-being focused plant-based products in China. Utilizing modern engineering technologies and biotechnologies, Shineco produces, among other products, Chinese herbal medicines, organic agricultural produce, and specialized textiles. For more information about Shineco, please visit http://tianyiluobuma.com.
This press release contains information about Shineco's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Shineco encourages you to review other factors that may affect its future results in Shineco's registration statement and in its other filings with the Securities and Exchange Commission.
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