Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd. (SZSE:002727) announced that it has entered into a conditional shares subscription agreement for a private placement of 78,838,169 A shares at CNY 19.28 per share for gross proceeds of CNY 1,519,999,898.32 on January 4, 2017. The transaction will include participation from new investor, Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (SEHK:874), which will invest CNY 799,999,982 to subscribe for 41,493,775 shares to acquire 6.92% stake in the company. The shares being issued to the new investor are subject to a hold period of 36 months from the listing date.

The transaction was approved at the 28th session of the 6th directorate meeting of Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (SEHK:874) and does not require the approval of its shareholders' meeting. The transaction is subject to approval from the 1st extraordinary general meeting of 2017 to be held on January 20, 2017.