Vasomedical, Inc and its newly formed subsidiary, Vasomedical Global, have announced their intention to acquire two companies in China.
Company officials confirmed that they have also signed an agreement to further purchase Life Enhancement Technology Limited and Biox Instruments Co., Ltd., both of which are based in the People’s Republic of China. This new deal will bring in total cash payment of $1,000,000 and the issuance of up to 7,400,000 restricted shares of the company’s common stock, as well as warrants, part of which issuance is performance based.
Dr. Jun Ma, President and CEO of Vasomedical, Inc., upon signing the agreement with Li, and Shen, said that the consolidation is the first step of Vasomedical’s long term strategic plan to position itself for growth and diversification in a rapidly changing and challenging global medical marketplace.
Vasomedical Global’s is acquiring Life Enhancement Technology Limited (LET), which is based in Foshan, Guangdong Province, China. It has been Vasomedical’s contract manufacturer for its Enhanced External Counterpulsation (“EECP”) systems including its AngioNew and Lumenair EECP systems for the last several years.
This acquisition will provides Vasomedical with consolidated technical and manufacturing capability in its EECP business which should significantly increase gross margins and enable the Company to meet anticipated increasing demand for its EECP systems.
Xichang Li, President of Life Enhancement Technology, stated, “LET continues to develop state of the art products. It has positioned itself strategically to meet the challenge and support of anticipated increasing demand for the EECP systems worldwide.”
Vasomedical Global’s second acquisition Biox Instruments Co. Ltd. (Biox) is located in Wuxi, Jiangsu Province, China. This company has been has been the developer and OEM partner of Vasomedical's BIOX series ambulatory ECG Holter and blood pressure monitoring (ABPM) systems for several years.
Qiuming Shen, President of Biox Instruments, noted that the consolidation plan “further strengthens the proactive sales channel growth plan Biox has been implementing over the past few years and presents even greater sales opportunities for its highly profitable products, technology development and innovative management in a larger global marketplace.”
Dr. Ma concluded saying that they anticipate the closing of these acquisitions to take place within the next two weeks and also expect to be looking for accretive acquisitions of other medical device companies.
Vasomedical, Inc. is engaged in designing, manufacturing, marketing and supporting EECP external counterpulsation systems based on the Company's proprietary technology.
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Ken Murray is President and Chief Blogger at VanillaSoft. To read more of his articles, please visit his columnist page.Edited by
Rich Steeves
