Hubei Minkang Pharmaceutical Ltd.(HBMKD 0.00, 0.00, 0.00%) ("Hubei Minkang", or the "Company") (formerly Nexgen Petroleum Corp.) is pleased to announce that it has entered into a letter of intent ("LOI") with HBMK Limited ("HBMK"), a BVI corporation. HBMK Limited is the sole shareholder of Hubei Minkang Pharmaceutical Co., Ltd., a company organized under the laws of the People's Republic of China, or is in the process of acquiring all of the issued and outstanding shares in the capital of Hubei Minkang Pharmaceutical Co., Ltd., which is a modern pharmaceutical enterprise that produces and markets Traditional Chinese Medicine in China as well as markets its products to the US, Japan, Canada, Singapore, Malaysia, Thailand and Hong Kong among other countries.
On October 18, 2010, the Company and HBMK executed the LOI, whereby the Company and HBMK intend to complete a Purchase Agreement (the "Definitive Agreement"), where the Company will acquire 100% of the issued and outstanding shares of capital stock of HBMK (the "HBMK Shares") in exchange for 28,000,000 shares of common stock of the Company (the "Exchange Shares"), on the terms and subject to the conditions set out in the Definitive Agreement to be entered into between the Company and HBMK (the "Proposed Transaction").
Concurrent with the closing of the Proposed Transaction with the shareholders of HBMK, the Company agrees not to have more than $50,000 in outstanding liabilities and to dispose of its oil and gas assets.
The shares of common stock of the Company to be issued to the shareholders of HBMK in the Proposed Transaction will be issued pursuant to an exemption from registration requirements and will be subject to a statutory hold period.
Either the Company or HBMK may terminate the LOI if the parties fail to enter into a Definitive Agreement on or before November 15, 2010, unless extended by mutual agreement of the parties in writing for a maximum of 14 days per extension.
In addition, the Company is pleased to announce that it has changed its name to Hubei Minkang Pharmaceutical Ltd. effective October 20, 2010 with the Nevada Secretary of State's office. In addition, effective October 20, 2010, the Company has effected a one (1) for eight (8) reverse stock split of its authorized and issued and outstanding common stock. As a result, the Company's authorized capital has decreased from 1,350,000,000 shares of common stock with par value of $0.001 per share and 10,000,000 shares of preferred stock with par value of $0.001 per share to 168,750,000 shares of common stock with par value of $0.001 per share and 10,000,000 shares of preferred stock with par value of $0.001 per share, and correspondingly its issued and outstanding capital has decreased from 64,765,941 shares of common stock to 8,095,742 shares of common stock.
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