KUNMING, CHINA--(Marketwire - Feb 15, 2013) - China Shenghuo Pharmaceutical Holdings, Inc. (PINKSHEETS: CKUN) ("China Shenghuo" or the "Company") today announced that its Board of Directors (the "Board") received a preliminary, non-binding proposal from Lan's Int'l Medicine Investment Co., Limited ("LIMI"), in which LIMI proposed that the Board consider a "going private" transaction to cash out the public shareholders of the Company at a price of $0.15 per share, to be funded by LIMI if necessary (the "LIMI Proposal"). LIMI currently owns approximately 77.3% of the Company's outstanding common stock.
The Company's Board of Directors formed a special committee of three independent directors (the "Special Committee") consisting of Jason Yuanxin Zhang, Yunhong Guan and Xiaobo Sun to evaluate the LIMI Proposal. The Special Committee has retained Dorsey & Whitney LLP as its legal advisor and National Securities Corporation as its independent financial advisor to assist it in its evaluation of the LIMI Proposal.
No decision has been made by the Special Committee with respect to the LIMI Proposal and there can be no assurance that any definitive offer will be made, or any agreement will be executed, or that the LIMI Proposal or any other transaction will be approved or consummated.
About China Shenghuo
Founded in 1995, China Shenghuo is primarily engaged in the research, development, manufacture, and marketing of Sanchi-based medicinal and pharmaceutical, nutritional supplement and cosmetic products. Through its subsidiary, Kunming Shenghuo Pharmaceutical (Group) Co., Ltd., it owns thirty SFDA (State Food and Drug Administration) approved medicines, including the flagship product Xuesaitong Soft Capsules. At present, China Shenghuo incorporates a sales network of agencies and representatives throughout China, which markets Sanchi-based traditional Chinese medicine to hospitals and drug stores as prescription and OTC drugs primarily for the treatment of cardiovascular, cerebrovascular and peptic ulcer disease. The Company also exports medicinal products to Asian countries such as Indonesia, Singapore, Japan, Malaysia, and Thailand and to European countries such as the United Kingdom, Tajikistan, Russia and Kyrgyzstan.
China Shenghuo is also expanding into the businesses of the hotel, hospitality and wellness tourism. For more information, please visit http://www.shenghuo.com.cn.
Safe Harbor Statement
This press release may contain certain "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that were filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.