Pharma Focus Europe

Shineco Entered Into Framework Agreement Relating to Acquisition of Antiviral Fabric Producer Chongqing Wintus Group

Wednesday, January 18, 2023

Shineco, Inc., a producer and distributor of Chinese herbal medicines, organic agricultural products and other biotech products, announced today that on January 13, 2023, the Company entered into a non-binding framework agreement (the “LOI”) with certain shareholders of Dream Partner Limited (“Dream Ltd.”) to acquire 80% equity interests of Dream Ltd., which indirectly owns 100% equity interests of Chongqing Wintus Group (“Wintus”), which is a private company based in China that produces specialized antiviral silk fabric materials that can be widely used in the medical, hygiene, pharmaceutical and personal health fields.

According to the LOI, the total purchase price of the acquisition is estimated to be approximately $40 million which is expected to consist of cash and the Company’s common stock. The LOI represents terms for a proposed transaction and will be subject to legal and financial due diligence, which includes a third-party audit and evaluation, Shineco’s shareholder’s approval and definitive documentation.

Ms. Jennifer Zhan, CEO of Shineco, commented, “We are excited about the prospect of the potential transaction with Wintus, which we believe is an excellent fit for our current business and complements our R&D achievements in the medical and healthcare fields. In addition to its antibacterial and antiviral fabrics, Wintus’s innovations in the field of medical materials align with our R&D focus. Further, we believe that the potential synergies with our prior acquisition of Changzhou Biowin Pharmaceutical Co., Ltd. is compelling as it will further advance the exploration of animal fiber biodegradable medical devices as well as open up new fields of discovery.”

CEO Jennifer Zhan continued, “We believe that the potential acquisitions will accelerate the formation of a vertically integrated R&D, production and sales platform across an array of medical and healthcare products that will enable us to achieve critical mass and an enlarged footprint and greater commercial development opportunities.”

Ms. Lisa Wang, Chairperson of Wintus, commented, “In recent years, we have increased our investment in R&D which led to our developing antibacterial and antiviral fabrics that we believe could play an important role in preventing and inhibiting the growth and spread of Covid-19. The LOI with Shineco, which has strong R&D capabilities and international distribution channels, could help bring our technological advances to market faster and jointly we believe could achieve a qualitative leap in the fields of textile manufacturing, medical care and personal health.”

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