UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

April 16, 2021

Date of Report

(Date of earliest event reported)

 

BOQI International Medical Inc.

(Exact name of registrant as specified in its charter)

 

Delaware   000-50155   02-0563302
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (IRS Employer
Identification No.)

 

Room 3601, Building A, Harbour View Place, No. 2 Wuwu Road,
Zhongshan District, Dalian, Liaoning Province, P. R. China, 116000

(Address of principal executive offices and zip code)

 

(8604) 1182209211

(Registrant’s telephone number, including area code)

 

Not Applicable
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common stock, $0.001 par value   BIMI   The NASDAQ Capital Market

 

 

 

 

  

Item 1.01 Entry into a Material Definitive Agreement.

 

On April 16, 2021, the Registrant entered into an Amendment Agreement (the “Amendment”) to amend the Stock Purchase Agreement dated as of April 9, 2021 by and among the Registrant, Bimai Pharmaceutical (Chongqing) Co., Ltd., a company organized under the laws of the People’s Republic of China (the “PRC”), Wuzhou Qiangsheng Hospital Co., Ltd., a company organized under the laws of the PRC, Suzhou Eurasia Hospital Co., Ltd., a company organized under the laws of the PRC, Yunan Yuxi Minkang Hospital Co., Ltd., a company organized under the laws of the PRC, Mr. Jiangjin Shen, an individual residing in the PRC and Mr. Zhiwei Shen, an individual residing in the PRC. The Amendment clarified certain details with respect to the requirement for stockholder approval in the event the Registrant elects to pay the post-closing consideration in shares of the Registrant’s common stock in lieu of cash, if payable.

 

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Amendment, which is filed as Exhibit 4.1 hereto, and is incorporated herein by reference.

  

The information in this Current Report on Form 8-K may contain forward-looking statements based on management’s current expectations and projections, which are intended to qualify for the safe harbor of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein that are not historical facts are considered “forward-looking statements.” Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, statements regarding the efficacy of investment in research and development are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the effect of political, economic, and market conditions and geopolitical events; legislative and regulatory changes that affect our business; the availability of funds and working capital; the actions and initiatives of current and potential competitors; investor sentiment; and our reputation. The Registrant not undertake any responsibility to publicly release any revisions to these forward-looking statements to take into account events or circumstances that occur after the date of this report. The factors discussed herein are expressed from time to time in the Registrant’s filings with the Securities and Exchange Commission available at http://www.sec.gov.

 

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

  

Exhibit   Description
     
4.1   Amendment Agreement dated April 16, 2021

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Date: April 22, 2021 BOQI International Medical Inc.
  (Registrant)
     
  By: /s/ Tiewei Song
    Tiewei Song
    Chief Executive Officer

  

 

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Exhibit 4.1

 

AMENDMENT AGREEMENT

 

This Amendment Agreement (this “Agreement”) is made and entered into as of April 16, 2021 by and among BOQI INTERNATIONAL MEDICAL INC., a company organized under the laws of the state of Delaware, the U.S.A. (“Parent”), BIMAI PHARMACEUTICAL (CHONGQING) CO., LTD., a company organized under the laws of the PRC (“Buyer”), WUZHOU QIANGSHENG HOSPITAL CO., LTD., a company organized under the laws of the PRC ( “Qiangsheng”), SUZHOU EURASIA HOSPITAL CO., LTD., a company organized under the laws of the PRC (“Eurasia”), YUNAN YUXI MINKANG HOSPITAL CO., LTD., a company organized under the laws of the PRC (“Minkang”), Mr. JIANGJIN SHEN, an individual residing in the PRC (“Jiangjin”), and Mr. ZHIWEI SHEN, an individual residing in the PRC (“Zhiwei”). Jiangjin and Zhiwei are herein collectively as the “Sellers.” Each of the parties named above may be referred to herein as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS, Parties are parties to that certain Stock Purchase Agreement dated as of April 9, 2021 (the “Original Agreement”), where Buyer agreed to purchase all the issued and outstanding shares of capital stock in Qiangsheng, Eurasia and Minkang Shares from Sellers;

 

WHEREAS, the Parties desire to amend certain terms and conditions of the Original Agreement;

 

WHEREAS, pursuant to Section 13.7 of the Original Agreement, amendments to the Original Agreement shall be in writing and shall require the written consent of all parties involved; and

 

WHEREAS, the undersigned constitute all parties to the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

1. Defined Terms. Capitalized terms used herein but not otherwise defined shall have the meanings ascribed to such terms in the Original Agreement.

 

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2. Amendment. The Parties hereby agree to amend the Original Agreement (as amended by this Agreement, the “Amended Agreement”) as follows:

 

(1) Section 2.6 (d) is hereby amended and restated in its entirety as follows:

 

“(d) Notwithstanding anything to the contrary contained herein, Buyer may elect, at its sole discretion, to have the Second Payment and/or the Third Payment paid in the form of the Parent Shares, by delivering a written notice about Buyer’s exercise of this option (the “Option Exercise Notice”), to Sellers simultaneously with the delivery of the Final 2021 Profit Statement, or the Final 2022 Profit Statement, as the case may be. The number of the Parent Shares (the “Earnout Parent Shares”) to be issued as payments under this Section 2.6(d) shall be the result of the amount of the Second Payment or the Third Payment, as the case may be, divided by $3.00. Notwithstanding anything to the contrary further, if (A) the Closing Stock Payment and any of the Earnout Parent Shares issuable, calculated collectively, will have voting power equal to or in excess of 20% of the total voting power outstanding as of the date hereof, or (B) the aggregate number of the Closing Stock Payment and any of the Earnout Parent Shares issuable will be equal to or in excess of 20% of the total number of Parent Shares outstanding as of the date hereof, the issuance of the Earnout Parent Shares must be approved by Parent’s shareholders (the “Parent’s Shareholders Approval”) pursuant to Nasdaq Rule 5635. In the event the Parent’s Shareholders Approval becomes necessary pursuant to the foregoing sentence, no Earnout Parent Shares shall be issued to Sellers unless and until the Parent’s Shareholders Approval has been obtained, and the Second Payment Date or the Third Payment Date, as the case may be, shall be extended until the fifteenth (15th) date after the Parent’s Shareholders Approval has been received. If the Parent’s Shareholders Approval has not been received within one (1) year after Buyer delivers the Option Exercise Note, the Second Payment or the Third Payment, as the case may be, shall be paid in Cash to Sellers immediately.”

 

(2) Reference to and Effect on the Original Agreement. On or after the date hereof, each reference in the Original Agreement to “this Agreement,” “hereunder,” “herein” or words of like import shall mean and be a reference to the Original Agreement as amended hereby. No reference to this Agreement need be made in any instrument or document at any time referring to the Original Agreement, a reference to the Original Agreement in any of such to be deemed a reference to the Amended Agreement.

 

(3) No Other Amendments. Except as set forth herein, the Original Agreement shall remain in full force and effect in accordance with its terms, which such terms are hereby ratified and confirmed and remain in full force and effect.

 

3. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

 

4. Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

5. Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights of obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of New York without regard to its choice of laws principles. Any unresolved controversy or claim arising out of this Agreement will be governed in accordance with the provisions of the Original Agreement.

 

6. Representation by Counsel. Each of the parties hereto has been represented or has had the opportunity to be represented by legal counsel of their own choice.

 

(Signature Pages Follow)

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

BUYER:  
     
BIMAI PHARMACEUTICAL (CHONGQING) CO., LTD.
   
By:  /s/ Xiaoping Wang            
Name: Xiaoping Wang   
Title: CEO

 

PARENT:  
     
BOQI INTERNATIONAL MEDICAL INC.  
     
By: /s/ Tiewei Song                        
Name: Tiewei Song                     
Title: CEO  

 

SELLERS:
 
JIANGJIN SHEN
     
By: /s/ Jiangjin Shen  
Name:  Jiangjin Shen  
Address: No. 214-1, Xihuang Village, Donghai County, Chengxiang District, Putian City,
Fujian Province, PRC  

 

ZHIWEI SHEN  
     
By: /s/ Zhiwei Shen  
Name:  Zhiwei Shen  
Address: No. 214, Xihuang Village, Donghai County, Chengxiang District, Putian City,
Fujian Province, PRC  

 

Acquired COMPANIES:  
     
WUZHOU QIANGSHENG HOSPITAL CO., LTD.  
     
By: /s/ Zhiwei Shen  
Name:  Zhiwei Shen  
Title: Chairman of the Board  

 

SUZHOU EURASIA HOSPITAL CO., LTD.  
     
By: /s/ Jiangjin Shen  
Name:  Jiangjin Shen  
Title: Chairman of the Board  

 

YUNAN YUXI MINKANG HOSPITAL CO., LTD.  
     
By:  /s/ Jiangjin Shen  
Name:  Jiangjin Shen  
Title: Chairman of the Board  

 

 

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