Hebei Changshan Biochemical Pharmaceutical Co., Ltd. (SZSE:300255) signed the share transfer agreement to acquire 74.18% stake in Changzhou Taikang Pharma Co., Ltd from Changzhou Nuojin Investment Co,. Ltd for CNY 79.2 million in cash on January 11, 2012. Within 15 working days after the agreement becomes effective, Hebei Changshan Biochemical Pharmaceutical will pay Nuojin Investment 20% of the transaction price. Within 30 working days, after Changzhou Taikang Pharma receives the notice on the modification for industry and commerce, Hebei Changshan Biochemical Pharmaceutical will pay Nuojin Investment 50% of the transaction price. Within 30 working days after the delivery date, Hebei Changshan Biochemical Pharmaceutical will pay Nuojin Investment 20% of the transaction price. Hebei Changshan Biochemical Pharmaceutical will pay the remaining 10% balance after Changzhou Taikang Pharma receives heparin API GMP Certification in Japan, the approval documents for the drug registration of the low molecular weight heparin injection transferred by Techpool Bio-Pharma Co., Ltd and completes the change in ownership of the patent for the preparation method of sildenafil.

The transaction shall be funded through excess proceeds. As of November 30, 2011, Changzhou Taikang Pharma Co., Ltd reported total assets of CNY 109.33 million, total debt of CNY 33.83 million, net asset of CNY 75.95 million, revenues of CNY 23.58 million, Operating loss of CNY 4.16 million and net loss of CNY 3.61 million.

Hebei Changshan Biochemical Pharmaceutical Co., Ltd. (SZSE:300255) cancelled the acquisition of 74.18% stake in Changzhou Taikang Pharma Co., Ltd from Changzhou Nuojin Investment Co,. Ltd on January 11, 2013.