CHINA HEALTH TO ACQUIRE XI'AN MEICHEN PHARMA

China Health Holding has executed a definitive agreement to acquire all assets of Chinese drugmaker Xi'An Meichen Pharmaceutical. Under the agreement, China Health will acquire Xi'An Meichen's new pharmaceutical manufacturing facilities -- all certified for good manufacturing practices (GMPs) by China's State Food and Drug Administration (SFDA) -- along with 43 SFDA-approved drugs.

China Health will issue 20 million shares of its restricted common stock and pay approximately $1,530,000 in cash to Xi'An Meichen. The conditions of closing include he satisfactory completion of due diligence by the parties and the approval of the transaction by the shareholders holding 100 percent of the ownership interest of Xi'An Meichen.

"Through this and other transactions, we are in the process of building a powerful network of established China-SFDA-certified pharmaceutical drug manufacturing facilities along with extensive hospital and drugstore distribution channels in China," Julianna Lu, founder and CEO of China Health, said. "We intend to also have an enhanced pipeline of hundreds of China-SFDA-certified pharmaceutical drugs."

In addition to the pending Xi'An Meichen acquisition, China Health has announced several other acquisitions of Chinese drug companies in recent months.

Xi'An Meichen manufactures and distributes herbal and chemical drugs for treating cardiovascular disease, gastrointestinal disease, asthma and insomnia, among other conditions.