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.