Lee's Pharmaceutical Announces Equity Financing and Plans for Potential IPO of China Ophthalmology Focus

[Caihua News] Lee's Pharmaceutical (00950-HK) announced that it will sell approximately 45.525% of the equity in China Ophthalmology Focus Limited for a consideration of US$50 million (approximately HK$390 million), to be paid through the issuance of Series A preferred shares.

China Ophthalmology Focus is currently engaged in the research, development, and commercialization of products in ophthalmology, obstetrics and gynecology, dermatology, and other related pharmaceutical products, and conducts other related activities through its wholly foreign-owned enterprise. Upon completion of the transaction, the Company’s indirect equity interest in China Ophthalmology Focus will be reduced to approximately 50.117%, and China Ophthalmology Focus will continue to be an indirect subsidiary of the Company.

The Company intends to pursue a qualified initial public offering of China Ophthalmology Focus. However, this remains a preliminary plan at present, and no specific proposals or timelines have been finalized for such qualified initial public offering. Based on the Directors’ view of the future prospects of China Ophthalmology Focus, the Directors are of the opinion that, should the qualified initial public offering not proceed as planned, the redemption rights would enable the Company to repurchase the shares held by such investors at a reasonable cost.