Shanghai RAAS Blood Products Co Ltd to Issue New Shares for Acquisition of Company and Fund Raising

Shanghai RAAS Blood Products Co Ltd announced that it has decided to issue a total of 93,652,444 shares, at the price of RMB 19.22 per share, to acquire a 100% stake in Banghe Pharmaceutical Co., Ltd, including 29,191,467 shares to Nanchang-based investment company for a 31.17% stake in Banghe Pharmaceutical, 29,809,573 shares to a Xinjiang-based investment company for a 31.83% stake in Banghe Pharmaceutical, 29,968,782 shares to Mr. Fu Jianping for a 32.00% stake in Banghe Pharmaceutical, as well as 4,682,622 shares to Xiao Xiangyang for a 5.00% stake in Banghe Pharmaceutical. After the transaction, the Company will hold a 100% stake in Banghe Pharmaceutical. The Company has also decided to issue 26,000,000 shares to RAAS China Limited through private placement, at the price of RMB 19.22 per share, to raise RMB 499,720,000. The Company will use the proceeds to develop Banghe Pharmaceutical's main business, as well as fulfill the Company's working capital.