WeiDa Medical Turns to Nonferrous Metal Producer

GUANGZHOU, May 7 -- WeiDa Medical Applied Technology Co Ltd, a pharmaceutical firm suspended trading for more than two years, yesterday announced that it will acquire a 62.96% stake in Yindu Mining, a nonferrous metal based in Inner Mongolia, by swapping total assets and issuing new shares.

In the injection project, the Shenzhen-listed firm will obtain RMB 3.12 billion of the stake value of Yindu Mining, however, the firm's total assets were only valued at RMB 0.14 billion, so it may need to raise the balance up to RMB 2.98 billion through private placement.

Reportedly, China Nonferrous Metal Industry's Foreign Engineering and Construction Co Ltd, which holds a 9.26% stake in Yindu Mining, will subscribe partial shares to-be-issued by WeiDa Medical.

The subscriber will have 58.07 million shares or a 10.85% stake in WeiDa Medical to become the second largest shareholder.

On May 5, WeiDa Medical resumed trading and soared to RMB 8.11 per share.