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CALCOL, INC. ACQUIRES ZHAOTUN MEDICINE MANUFACTURER, SHANGHAI, CHINA AND BEIJING DONGFENG PHARMACEUTICAL, BEIJING, CHINA

 CALCOL, INC. ACQUIRES ZHAOTUN MEDICINE MANUFACTURER, SHANGHAI,
 CHINA AND BEIJING DONGFENG PHARMACEUTICAL, BEIJING, CHINA
 NEW YORK, May 21 /PRNewswire/ -- CALCOL, INC. (NASD Electronic Bulletin Board: CLCL) today announced that it signed a Letter of Intent and an Asset Purchase and Cooperation Agreement effective on May 8, with the Qingpu County Government, Shanghai, China, for CALCOL to acquire Zhaotun Medicine Manufacturer ("Zhaotun") of Qingpu County, Shanghai, China. The agreement, which is subject to final Chinese government approval, provides for CALCOL to acquire and modernize the Zhaotun pharmaceutical manufacturing plant of Shanghai, which currently manufactures more than 17 products.
 The agreement calls for CALCOL to agree to pay the Qingpu County Government 5,000,000 common shares and other considerations, including direct investment of USD $5,000,000 for each of five years to be used to modernize and re-equip the factory and retrain the workers in good GMP manufacture and FDA-approvable plants and products, assistance to Zhaotun in the development of export markets, implementation of a profit sharing arrangement similar to a joint venture, and the introduction of new products to be manufactured at the Zhaotun plant. In exchange, CALCOL will receive full title ownership to the Zhaotun facility, including all of its assets, capital, land, buildings, plants, equipment, products, processes, patents, copyrights, and trademarks.
 Zhaotun has a land area of 33,000 meters squared, and buildings comprising 12,500 meters squared. It was built in 1960, and employs approximately 400 Chinese workers. It is a general pharmaceutical factory, producing more than 17 bulk active and finished products for domestic consumption within China and export. Zhaotun's fixed assets are valued by the Qingpu County Government at 4.5 million Chinese Yuan (USD $818,000). Zhaotun's total sales in 1991 were 13.5 million Chinese Yuan (USD $2,450,000), and its 1991 gross profit (pre-tax) was 1.8 million Chinese Yuan (USD $327,000) (Unaudited). Officials of the Chinese government have promised CALCOL five years of favorable tax treatment under Chinese investment law.
 On May 12, CALCOL concluded a similar agreement with BEIJUNG DONGFENG PHARMACEUTICAL of Beijing, China. CALCOL signed a Letter of Intent and an Asset Purchase and Cooperation Agreement effective on May 12, for CALCOL to acquire BEIJING DONGFENG PHARMACEUTICAL of Beijing, China.
 The agreement, which is subject to final Chinese government approval and acceptance of the certified Chinese translation of Chinese agreement, provides for CALCOL to acquire and modernize the BEIJING DONGFENG PHARMACEUTICAL PLANT of Beijing, which currently manufactures approximately 100 different kinds of medicines.
 The agreement calls for CALCOL to agree to pay the BEIJING DONGFENG PHARMACEUTICAL 5,000,000 common shares and other considerations, including direct investment of $5,000,000 USD for each of five years to be used to modernize and re-equip the factory and retrain the workers in good GMP manufacture and FDA-approvable plants and products, assistance in the development of export markets, implementation of a profit sharing arrangement, similar to a joint venture, and the introduction of new products to be manufactured by BEIJING DONGFENG PHARMACEUTICAL. In exchange, CALCOL will receive full title ownership to the BEIJING DONGFENG PHARMACEUTICAL facility, including all of its assets, capital, land, buildings, plants, equipment, products, processes, patents, copyrights, and trademarks.
 BEIJING DONFENG PHARMACEUTICAL has a land area of 100,000 meters squared, and buildings comprising 20,000 meters squared. It was started in 1972, and employs approximately 1,500 Chinese workers. It is a general pharmaceutical factory, producing nearly 100 kinds of Chinese and Western medicines in various forms, such as oral liquids, injectables, pills, powders, and capsules for domestic consumption within China and export. BEIJING DONGFENG PHARMACEUTICAL was a state owned enterprise directly auspiced by Beijing Great Wall Agriculture, Industry, and Commerce Corporation. Located in the suburbs of Beijing within 3.7 miles from the heart of the city, the factory covers one- half acre squared. BEIJING DONGFENG PHARMACEUTICAL's fixed assets are valued by Beijing Great Wall Agriculture, Industry and Commerce Corporation at 37 million Chinese Yuan (USD $6,727,000). BEIJING DONGFENG PHARMACEUTICAL's total sales in 1991 were 120 million Chinese Yuan (USD $21,818,000), and its 1991 gross profit (pre-tax) was 14 million Chinese Yuan (USD $2,500,000) net profit 10 million Chinese Yuan (USD $1,818,000) (Unaudited). BEIJING DONGFENG PHARMACEUTICAL has good GMP manufacture and is a US FDA approved facility with modern airflow and modern automated equipment. Its major products include Vitamin E, Royal Jelly and Ginseng, which it exports to the United States. Officials of the Chinese government have promised CALCOL five years of favorable tax treatment under Chinese investment law.
 CALCOL is a development-stage company, organized to research, manufacture and market pharmaceutical drugs for the treatment of cancer, AIDS, rheumatoid arthritis, and the side effects of cancer chemotherapy. CALCOL's stock trades over-the-counter in the United States on the Electronic Bulletin Board of the NASD under the symbol "CLCL". CALCOL's stock price on May 19 at the close was USD $0.15- $0.25 (fifteen cents bid, twenty-five cents asked).
 -0- 5/21/92
 /CONTACT: Norman C. Kaplan, chairman and president of CALCOL INC. Medical & Scientific Research, 212-582-5861/
 (CLCL) CO: CALCOL INC. Medical & Scientific Research ST: New York IN: MTC SU: TNM


CG -- CL002 -- 2774 05/21/92 11:21 EDT
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