Beijing Strong Biotechnologies Launches Bailout Plan for Cash-Strapped Associate
Beijing Strong Biotechnologies (SHE:300406) launched a restructuring plan for financially strapped associate company Beijing Zhongke Natai Technology, according to a Thursday after-hours filing with the Shenzhen bourse.The move will help resolve a lawsuit involving the failed equity repurchase of 8 million yuan of shares by series A1 round investor Hangzhou Junze No. 1 Enterprise Service Partnership, the filing said.Beijing Zhongke Natai Technology founder Hu Zhiyuan will repurchase the shares and facilitate Junze No. 1's exit from the distressed company.Other series A investors, including the listed company, will purchase 26,212 shares at a nominal price of 26,212 yuan, to increase its stake in Zhongke Natai to 6.3520% from 5.1387%.The associate's registered capital will rise to 1.7 million yuan from about 1.6 million yuan.
