Shineco Inc (NASDAC:THYT) shares have surged in the early US trading session after the company announced that it has entered into a non-binding letter of intent to acquire a controlling interest in Changzhou Biowin Pharmaceutical…
Shineco, a producer and distributor of Chinese herbal medicines, said that it signed the Letter of Intent with Beijing Kanghuayuan Technology Development co and Kelinbo Venture Capital Partnership on the 21st of July.
Changzhou Biowin is a Chinese biotechnology company focused on on-site diagnostic product R&D and high-tech biomedical products manufacturing.
“We view this potential acquisition of CBP as a great opportunity and a key growth driver for Shineco. Currently, one of the best ways to detect COVID-19 infection is by taking nucleic acid test and CBP’s technology can achieve rapid nucleic acid testing, allowing customers to complete all procedures at home from collecting sample to having result. We believe this acquisition can expand our business, increase our revenue and profits, and create long-term value for our shareholders,” Said Shineco’s Chairman and Chief Executive Officer Yuying Zhang.
Shares in Shineco surged after the announcement and are currently trading at $0.79, +66.48%. Last week saw its share price close at $0.48 per share, while it is now up 93.54% for the year-to-date.