San Pu Pharmaceutical Company Issues More Than 300 Million Shares

No cash paction.

The announcement shows that the issue price is 7.19 yuan / share, the number of shares to be issued is 307 million 432 thousand and 684 shares, and the controlling shareholder Far East holding will own the wire and cable business quality assets, including the 100% stake of the Far East cable, the new Far East 100% stake and the composite technology 100% rights to subscribe for the private placement of shares, the paction does not involve cash pactions.

The target asset appreciation rate is 147.10%.

According to the "asset assessment report", in September 30, 2008, the value of the underlying assets was 894 million 549 thousand and 500 yuan, the assessed value was 2 billion 210 million 441 thousand yuan, and the appreciation rate was 147.10%.

The asset price of the paction is 2 billion 210 million 441 thousand yuan.

Far East Holdings will be absolute holding.

Before this issue, the Far East holding 27.96% stake in the San Pu pharmaceutical company. After this issue is completed, the shareholding ratio of the Far Eastern holding company will be raised to 79.77%, holding an absolute controlling position.

San Pu pharmaceutical said that the paction constitutes a cross linked paction and triggers the offer obligation. The Far East holding company applies for exemption from the offer obligation.

Wire and cable will become the main business.

Before this paction, the main business of San Pu pharmaceutical industry is the production and sale of pharmaceutical products.

After the completion of this paction, wire and cable will become the new main business of the company, and the proportion in the main business will greatly exceed that of the pharmaceutical business.

San Pu pharmaceutical said that the company is facing major business change risks.

When the related assets, business and personnel enter the company after the reorganization, if the company can not effectively manage it, it will affect the market competitiveness of the injected assets, thereby affecting the economic efficiency of the company.

Be alert to the risks of major civil actions

Far East cable and Shanghai with international trade Co., Ltd. have disputes on the purchase and sale contract of raw material copper and its supplementary agreement signed in December 25, 2007.

As of press release, the case is still under trial.

San Pu pharmaceutical said that it is not yet possible to make a reliable judgement on the verdict of the case and the specific effect of the judgment on the two sides.