"HEROSE PHARMA INTERNATIONAL PTE LTD"
The Board of Directors of Eu Yan Sang International Ltd ("the Company") is pleased to announce that the Company had entered into a Shareholders' Agreement and a Subscription Agreement with Herose Pharma International Pte Ltd ("Herose Pharma") and its shareholders to subscribe for new shares in the share capital of Herose Pharma, a private limited company incorporated in the Republic of Singapore.
Herose Pharma (formerly known as Uni-Communications Pte Ltd) is engaged in developing new Chinese medicinal products. One of its products known as "Herose", is a medication which is used in the treatment of certain skin conditions and is registered with the Ministry of Health of Singapore.
The authorised share capital of Herose Pharma is S$200,000 divided into 200,000 ordinary shares of S$1.00 each. Under the Subscription Agreement, the Company would progressively subscribe for 42,857 new ordinary shares of S$1.00 each in the share capital of Herose Pharma in three (3) tranches, at a price of S$15.00 per share:
First Tranche - 2,857 ordinary shares
Second Tranche - 6,667 ordinary shares
Third Tranche - 33,333 ordinary shares
As at this date hereof, the Company had subscribed for and had been allotted 2,857 ordinary shares, which represents 2.78% of the enlarged issued and paid-up capital of Herose Pharma. The balance of 100,000 ordinary shares (or 97.22% ) are held by two (2) individual shareholders. Should the Company fully subscribe for the 42,857 ordinary shares, its equity-stake in Herose Pharma would be 30%.
Upon the complete subscription of the three (3) tranches of shares, the Company would be granted the sole exclusive license to manufacture, market and distribute the "Herose" product for a period of twenty (20) years which includes, inter alia, the use of the name "Herose" and the sub-licensing of such rights to third parties on terms and conditions to be determined by the Company.
The investment in Herose Pharma, which is funded internally, is not expected to make a significant contribution to the results of the Company and the Group for the current financial year.
None of the Directors and Substantial Shareholders of the Company have any interest, direct or indirect, in the above transaction.
BY ORDER OF THE BOARD