Hong Yu, Chairman and Chief Executive Officer of TBET, signed a non-binding proposal letter to acquire the remaining 77.9% stake in Tibet Pharmaceuticals, Inc. for $34.7 million.
March 29, 2012 at 11:00 pm EST
Share
Hong Yu, Chairman and Chief Executive Officer of TBET, signed a non-binding proposal letter to acquire the remaining 77.9% stake in Tibet Pharmaceuticals, Inc. (NasdaqGM:TBET) for $34.7 million in cash on March 1, 2012. Hong Yu will pay $3 in cash for each share of Tibet. The transaction is intended to be financed with a combination of debt and equity capital to be secured by Yu. Yu will enter into discussions and negotiations, and possibly agreements, with potential sources of debt financing, if necessary for the transaction. TBET's Board of Directors has formed a special committee consisting solely of Independent Directors to consider the proposal.
Tibet Pharmaceuticals, Inc., formerly Shangri-La Tibetan Pharmaceuticals, Inc., is a specialty pharmaceutical company focusing on the research, development, manufacturing and marketing of Tibetan medicines. The Company sells both prescription and over-the-counter traditional Tibetan medicines. As of December 31, 2009, it had developed five pharmaceutical products. The Company sells its products principally to distributors in People's Republic of China, who in turn sell them to hospitals, hospital pharmacies and retail pharmacies. The Companyâs products include 25 Ingredients Mandrake Pill, 28 Ingredients Pinang Pill, 18 Ingredients Chebulic (Myrobalan) Frusemide Pill, 15 Ingredients Gentiana Pill and Pomegranate Nichirin Pill.
Hong Yu, Chairman and Chief Executive Officer of TBET, signed a non-binding proposal letter to acquire the remaining 77.9% stake in Tibet Pharmaceuticals, Inc. for $34.7 million.
TIBET PHARMACEUTICALS, INC. 
