Meditech Pharmaceuticals, Inc. (MDCH) Enters Into Agreement And Sells Controlling Equity Interest To Chinese Manufacturing Group
10/19/2005 5:13:16 PM
LIME ROCK, Conn.--(BUSINESS WIRE)--April 12, 2005--Meditech Pharmaceuticals, Inc. (OTCBB:MDPM) announced today that on March 31, 2005 it entered into a stock contribution agreement with a manufacturing group with operations in Bazhou City, Hei Bei Province, The People's Republic of China ("PRC"), providing for the issuance of 24,407,784 shares of its common stock in exchange for all the outstanding share capital of Deli Solar Holding Ltd., incorporated in the British Virgin Islands ("Deli (BVI)") and owner of Bazhou Deli Solar Energy Heating Co. Ltd. ("Deli (PRC)"), a manufacturer and vendor of hot water and space heaters in Bazhou City, PRC.
The transaction was contingent upon the investment by certain accredited investors of $5,748,015 in exchange for Meditech's issuance of 9,853,740 shares (approximately $0.58 per share) of its common stock. On March 31, 2005, Meditech accepted subscriptions from accredited investors to invest $5,748,015 for the purchase a total of 9,853,740 shares of Meditech stock with accompanying warrant rights entitling them to purchase an additional eight (8) shares of common stock for every ten (10) shares purchased, exercisable at approximately $0.64 per share.
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