HeartCare Medical-B (06609.HK) to Invest RMB 34.8 Million in Shanghai Yuban Medical Technology to Expand into Structural Heart Disease Treatment

HeartCare-B(06609) announced that on February 8, 2022, its wholly-owned subsidiary, Shanghai Weiqi Medical Instrument Co., Ltd., plans to acquire 36% equity of Shanghai Yuban Medical Technology Co., Ltd. from Zhang Yanxia and Li Jun for a consideration of RMB 4.8 million. Additionally, Shanghai Weiqi Medical Instrument Co., Ltd. agreed to inject RMB 30 million into the target company in exchange for approximately RMB 542,600 of the target company's registered capital.

Upon completion of the acquisition and capital injection, Weiqi Medical will hold 44.96% of the shares in the target company.

It is reported that Zhang Yanxia and Li Jun are the spouses of Wang Guohui and Ding Kui respectively, and both Wang Guohui and Ding Kui are directors of the company.

The target company is a medical device developer dedicated to formulating the best solutions for structural heart disease. Currently, the target company aims to enrich its multi-dimensional pipeline through internal research and development, becoming a leading enterprise in mitral regurgitation, tricuspid regurgitation, and mitral valve replacement. To date, the target company's mitral valve repair product has entered clinical trials, and its tricuspid valve repair product has reached the animal testing stage.

The Board believes that the acquisition will bring long-term and strategic benefits to the Company. The acquisition aligns with the Group's strategy to expand its product coverage into the structural heart disease treatment field and strengthens the Company’s therapeutic solutions in the cardiac interventional treatment area. It will create synergies with the Company’s product lines for cardioembolic stroke prevention and electrophysiology. In summary, the acquisition will diversify the Company’s product portfolio, reduce reliance on its existing neurointervention pipeline products, and enhance the Company’s leadership position in China’s innovative medical device market.

In addition, the target company's R&D needs and the expansion of its product scale require capital investment. The capital injection aims to increase the registered capital of the target company to provide funding for the implementation and execution of its development plans, achieving its growth opportunities. Specifically, the target company’s pipeline products are in the development stage and require further testing and clinical trials. The capital injection will accelerate its internal R&D process.