North Sea Kang Cheng-B Soars 30%! Company Issues 74.97 Million New Shares to Baoyuan Pharmaceutical, with a Price of HK$1.34 per Share, Representing a Discount of 19.76% from Pre-Halt Prices

North Sea Kang Cheng-B (01228) continued to rise in early trading, with its stock price increasing by 25.15%, currently reported at HK$2.09, with a turnover of HK$29.23 million.

North Sea Kang Cheng announced that it would issue 74.97 million new shares to Baoyang Pharmaceutical (301015.SZ) at a price of HK$1.34 per share, representing a discount of 19.76% from pre-halt prices, with the proceeds from the subscription expected to be approximately HK$98.66 million, intended for the research and development of commercial products; marketing and promotional activities; repayment of loan financing; and daily operations. Upon completion, Baoyang Pharmaceutical will hold a stake of 14.99% in the company, which has indicated that it has no intention of acquiring any controlling stakes in the company within three years.

At the same time, the two subsidiaries of the company and the affiliated companies of Baoyang Pharmaceutical signed a strategic cooperation agreement and an exclusive commercial service agreement. According to this, the relevant affiliated companies agreed to entrust Baoyang Pharmaceutical as the exclusive contract sales organization, promoting certain products of the group in mainland China, Hong Kong, and Macau.