Q&M Dental to acquire all remaining Aoxin Q&M shares at $0.0321 each

The offer will close on 28 May.

Q&M Dental Group has made an unconditional cash offer to acquire all remaining shares in its unit, Aoxin Q&M, at $0.0321 per share.

This offer follows Q&M’s recent stake increase in Aoxin Q&M from 33.33% to 50.53% which came after Q&M acquired 87,973,480 shares from Health Field Enterprises Limited (HFEL) pursuant to a share security agreement dated 12 October 2016.

The acquisition was completed at the volume-weighted average price (VWAP) of $0.0321 per share for trades executed on 22 April.

It also forms part of the partial settlement of profit guarantee amounts owed by Aoxin’s CEO, Dr. Shao Yongxin, and HFEL under the master agreement dated 13 November 2013.

On 17 April, Q&M issued a letter of demand to Dr. Shao for the repayment of $13m over a shortfall under a profit guarantee arrangement, which was part of a 2016 restructuring related to the spin-off and listing of Aoxin.

Assuming 100% acceptance of the unconditional cash offer combined with the share security agreement, Q&M could acquire up to 341,009,110 Aoxin shares, representing 66.67% of the total Aoxin shares.

The offer will close on Wednesday, 28 May, at 5.30 pm.