Aug 12 2010
BioPharm Asia, Inc. (Ticker Symbol: BFAR.OB, the "Company") announced today that on August 7, 2010, its wholly-owned subsidiary, Tonghua Huachen Herbal Planting Company Limited, acquired all of the outstanding equity interests in Tonghua Tianbao Wood Frog Cultivation Limited Company ("TBWF") for a purchase price of $4,000,000. The purchase price is payable in installments of 2,000,000 RMB payable five days after closing and on each of the first and second anniversaries of the closing, with the balance payable on the third anniversary of the closing.
TBWF, founded in 2010, is engaged in the breeding and processing of wood frogs. The wood frog, also known as forest frog, is valued for its abundant protein and aminoacid, which are used extensively for vitamins and various supplementary traditional Chinese medicines, as well as for food and cosmetics.
Mr. Shengqun Li, BioPharm Asia's recently appointed CEO said, "BioPharm Asia looks forward to this product expansion, facilitated by the efficient structure of TBWF's operations and assisted by BioPharm Asia's extensive distribution network and chain of retail pharmacies. We anticipate that when fully developed, this product line will provide the Company with annual revenues of approximately $3 million, with an attractive margin."