0001213660 false 0001213660 2022-12-15 2022-12-15 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

  

 

 

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

 

Date of Report (Date of earliest event reported): December 15, 2022

 

BIMI International Medical Inc.
(Exact name of registrant as specified in its charter)

 

Delaware   001-34890   02-0563302
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (IRS Employer
Identification No.)

 

9th Floor, Building 2, Chongqing Corporation Avenue,
Yuzhong District, Chongqing, P. R. China
  116000
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (8604) 1182209211

 

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:

 

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))

 

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 Stock Market LLC

 

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.

 

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

On December 15, 2022, BIMI International Medical Inc. (the “Registrant” or the “Company”) entered into a Termination Agreement (the “Termination Agreement”) with BIMI HOSPITAL MANAGEMENT (CHONGQING) CO., LTD., BENGBU MARY OB-GYN HOSPITAL CO., LTD. (the “Mali Hospital”), RENBAO CHEN, and BENGBU MARY OB-GYN HOSPITAL (together the “Parties”), to terminate the Stock Purchase Agreement dated as of December 20, 2021 (the “Original Agreement”) by and among the Parties with respect to the purchase of the Mali Hospital. The closing of the Original Agreement was not completed.

 

Pursuant to the Termination Agreement, the Original Agreement will terminate effective as of the date of the return of the 60,000 shares of the Company’s common stock previously issued to the sellers of Mali Hospital and certain third-party beneficiaries. Such return is expected to take place promptly. The Company did not incur any penalties as a result of the termination of the Original Agreement. 

 

The foregoing description of the Termination Agreement does not purport to be complete and is qualified in its entirety by reference to the Termination Agreement, 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 does 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 Statement and Exhibits.

 

Exhibit No   Document
4.1   Termination Agreement dated December 15, 2022
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

1

 

 

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 hereunto duly authorized.

 

Dated: December 20, 2022 BIMI International Medical Inc.
     
  By: /s/ Tiewei Song
  Name:  Tiewei Song
  Title: Chief Executive Officer 

 

 

2

 

 

Exhibit 4.1

 

termination Agreement

 

This termination agreement (the “Agreement”) is made and entered into as of December 15, 2022 by and among BIMI International Medical Inc., a company organized under the laws of the state of Delaware, the U.S.A. (“Parent”), BIMI HOSPITAL MANAGEMENT (Chongqing) Co., Ltd. (formerly known as BIMAI HOSPITAL MANAGEMENT (CHONGQING) CO., LTD.) , a company organized under the laws of the PRC (“Buyer”), BENGBU MARY OB-GYN HOSPITAL CO., LTD., a company organized under the laws of the PRC (the “Company”), RENBAO CHEN, a Chinese citizen residing in the PRC (“Chen”) and BENGBU MARY OB-GYN HOSPITAL, a PRC organization (“Mali”). Chen and Mali may be referred to herein individually as a “Seller” and collectively as “Sellers.” Each of the parties named above may be referred to herein as a “Party” and collectively as the “Parties.” Capitalized terms used herein but not otherwise defined shall have the meanings ascribed to such terms in the Original Agreement (as defined below).

 

RECITALS

 

WHEREAS, the Parties entered into that certain Stock Purchase Agreement dated as of December 20, 2021 (the “Original Agreement”), whereby Buyer contemplated the purchase of all the issued and outstanding shares of capital stock of the Company from Sellers, in consideration of an aggregate purchase price of US$16,750,000;

 

Whereas, as of the date hereof, the Closing Stock Payment in the form of 3,000,000 Parent Shares have been delivered to Sellers and Third Party Beneficiaries pursuant to the Original Agreement;

 

Whereas, the closing of the Original Agreement has not taken place as of the date hereof;

 

WHEREAS, due to a 1-for-5 reverse stock split of Parent on February 2, 2022 and a 1-10 reverse stock split of Parent on December 9, 2022, the 3,000,000 Parent Shares issued to Sellers were consolidated into 60,000 Parent Shares; and

 

WHEREAS, the Parties desire to terminate the Original Agreement by mutual consent as permitted in Section 11.1 (c) of 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, intending to be legally bound, agree as follows:

 

1. Termination.

 

1.1 Immediately after the signing of this Agreement, each of Sellers and Third Party Beneficiaries shall execute and deliver a transfer agent instruction in substantially the form of Exhibit A and all other documents as requested by Buyer in order to cause the return to Parent of the 60,000 Parent Shares, which were previously issued to Sellers and Third Party Beneficiaries.

 

1.2 The Original Agreement will terminate effective as of the date of the return of the Parent Shares and shall be of no further force or effect.

 

 

 

 

1.3 Upon the termination of the Original Agreement, all further obligations of the Parties under the Original Agreement will terminate, except that the obligations in Sections 13.1 and 13.3 thereof will survive. None of Buyer, Parent, nor any of their Related Parties will have any debt, obligation or liability to any Seller or Third Party Beneficiary in connection with or resulting from the Original Agreement. Each Party, on behalf of itself and its respective Related Parties, hereby unconditionally and irrevocably releases the other Party and its Related Parties from any and all claims, debts, obligations and liabilities, whether known or unknown, contingent or non-contingent, at law or in equity, in each case arising from, in connection with or resulting from the Original Agreement.

 

2. 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.

 

3. 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.

 

4. Governing Law; jurisdiction. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the Parties 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 dispute arising from or in connection with this Agreement shall be submitted to China International Economic and Trade Arbitration Commission (CIETAC) for arbitration which shall be conducted in accordance with the CIETAC’s arbitration rules in effect at the time of applying for arbitration. The arbitral award is final and binding upon all the Parties. In the event a proceeding is commenced to enforce any provision of this Agreement, the prevailing party shall be entitled to recover from the non-prevailing party the reasonable fees and expenses payable by the prevailing party to his or its attorneys, accountants and other professionals in connection with that proceeding.

 

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

 

(Signature Pages Follow)

 

 

 

 

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

 

BUYER:

 

BIMI HOspital management (Chongqing) co., ltd.
     
By: /s/ Wangjin Wu  
Name: Wangjin Wu  
Title: Legal Representative  
     
PARENT:  
     
BIMI INTERNATIONAL MEDICAL INC.  
     
By: /s/ Tiewei Song  
Name:  Tiewei Song  
Title: CEO  
     
SELLERS:  
     
Renbao Chen  
     
By: /s/ Renbao Chen  
Name: Renbao Chen  
Address:  Room 1002, Unit 3, Building 007,
Jiulonghu Apartments,
Gulou District, Xu Zhou,
Jiangsu Province, PRC
 

 

Bengbu Mali OB-GYN hospital  
     
By: /s/ Jiansen Chen  
Name:  Jiansen Chen  
Title: President  

 

COMPANY:  
   
Bengbu Mali OB-GYN hospital co., ltd.  
   
By: /s/ Jiansen Chen  
Name:  Jiansen Chen  
Title: President  

 

 

 

 

Third party beneficiaries:  
     
DI LIU  
     
By: /s/ Di Liu  
Name: Di Liu                
Address: 1-2-301, District 7,
Shijishequ, Zhenxing Road,
Xinglongtai District, Panjin,
 

 

Liaoning Province, PRC  
     
LIJUN YU  
     
By: /s/ Lijun Yu  
Name:  Lijun Yu  
Address: 54-2-302, Xianfeng Area,
Xianfeng Community, Xinglong Road,
Xinglongtai District,
Panjin, Liaoning Province, PRC
 

 

GUILI ZHANG  
     
By: /s/ Guili Zhang  
Name: Guili Zhang  

Address: 1-15-33, Hongqiwei, Qingshui Street,
Shenbei New District,
Shenyang, Liaoning Province, PRC
 

 

jingbo wen  
     
By: /s/ Jingbo Wen  
Name: Jingbo Wen  

Address: No. 1 Lianmeng Road,
Unit 1, Room 302,
Kaiyuan, Liaoning Province, PRC
 

 

renhua chen  
     
By: /s/ Renhua Chen  
Name: Renhua Chen  

Address: Bengbu Tower, Room 613,
Boshan District,
Bengbo, Anhui Province, PRC
 

 

yang biao  
     
By: /s/ Biao Yang  
Name: Biao Yang  

Address: Tianyi Garden, Tower 11, Unit 3,
Room 402, Yuhui District,
Bengdbu, Anhui Province, PRC
 

 

 

 

 

Exhibit A Transfer Agent Instructions

 

Date:

 

American Stock Transfer & Trust Company, LLC

Attention Darren Larson

6201 15th Avenue

Brooklyn, NY 11219

By email: Darren.Larson@equiniti.com

 

Re: BIMI International Medical Inc. (“BIMI”)

 

Dear Mr. Larson:

 

The undersigned, the record and beneficial owner of _________ shares (the “Subject Shares”) of common stock of BIMI International Medical Inc. (“BIMI”) held in a DRS account (AST Account number _______), hereby unconditionally and irrevocably instructs American Stock Transfer & Trust Company, LLC (“AST”), BIMI’s transfer agent, to transfer the Subject Shares to BIMI. The undersigned consents to BIMI’s instructions to AST in substantially the form as Appendix I attached hereto.

 

The undersigned hereby agrees to indemnify and hold harmless AST, its affiliates, successors and assigns from and against any and all claims, damages, liabilities or losses to which they may be subject as a result of accepting this letter.

 

Sincerely,  
     
By:        
Name:    

 

 

 

 

Appendix I

 

(BIMI Company Letterhead)

 

Date

 

American Stock Transfer & Trust Company, LLC

Attention Darren Larson

6201 15th Avenue

Brooklyn, NY 11219

By email: Darren.Larson@equiniti.com

 

Re: BIMI International Medical Inc. (“BIMI”)

 

Dear Mr. Larson:

 

I am writing to you on behalf our company, of BIMI International Medical Inc. (“BIMI”). We have entered into agreements with certain of our shareholders whereby they have agreed to return to us an aggregate of ______ shares of our Common Stock. In your capacity as transfer agent for BIMI, you hereby authorized and instructed to cancel and retire the _______ shares as detailed in Schedule I hereto.

 

BIMI hereby agrees to indemnify and hold harmless American Stock Transfer & Trust Company, LLC, a New York limited liability trust company (“AST”), its affiliates, successors and assigns from and against any and all claims, damages, liabilities or losses to which they may be subject as a result of accepting this letter in connection with cancelation of the _______ shares of BIMI currently held in in book-entry positions with AST.

 

Thank you for your assistance and please let me know if you have any questions.

 

Sincerely,  
     
Name:  Tiewei Song  
Title: CEO  

 

 

 

 

Schedule I