- Stemcell United (SCU) has signed an agreement to acquire 50.1 per cent of Shenzhen Lantene Dingzhi Biotechnology
- Lantene was established in 2005 and is an aquaculture company in China specialising in the commercial scale cultivation and sale of sea grapes
- Sea grapes are a kind of algae species found in the coastal regions in the Indo-Pacific which can either be eaten or used as herbal medicine in the treatment of high blood pressure and diabetes
- To acquire the 50.1 per cent, Stemcell will issue 30 million shares at 1.8 cents, for a total of $540,000 and a 20 per cent share of subsidiary, Stemcell Essential
- The acquisition is expected to be completed by November 15
- Stemcell has ended the day 5.56 per cent in the green with shares trading for 1.9 cents each
Stemcell United (SCU) has signed an agreement to acquire 50.1 per cent of Shenzhen Lantene Dingzhi Biotechnology.
Lantene was established in 2005 and is an aquaculture company in China specialising in the commercial scale cultivation and sale of sea grapes.
Sea grapes are a kind of algae species found in the coastal regions in the Indo-Pacific.
They can either be consumed as a food or used as herbal medicine in China in the treatment of high blood pressure, rheumatism (musculoskeletal pain), diabetes, and bacterial and fungal infections.
To acquire the 50.1 per cent, Stemcell will issue 30 million shares at 1.8 cents, for a total of $540,000 and a 20 per cent share of subsidiary, Stemcell Essential.
Once completed, Lantene will be held under Stemcell Essential as part of the Stemcell group and both companies will appoint one Director to Lantene’s Board.
The acquisition is expected to be completed by November 15.
“Through this acquisition, we are not only able to establish a foothold in the Sea Grape industry in China, we have also secured the services of Mr Cao Yaoming, whom is an expert in the growing of sea grapes and has been in aquaculture industry for over 30 years,” Executive Chairman and Managing Director Philip Gu said.
“The acquisition will complement our joint venture with Blue Aqua International and will also enable us to increase our line of herbal products offerings,” he added.
Stemcell has ended the day 5.56 per cent in the green with shares trading for 1.9 cents each in an $11.54 million market cap.