Shineco Gains 12% On Plans To Acquire Beijing Wonner Biotech

(RTTNews) - Shares of Chinese herbal medicines producer Shineco, Inc. (TYHT) are climbing more than 12% Tuesday morning after the company said it entered into a framework agreement on October 4, to acquire more than 51% equity interest of biotechnology company Beijing Wonner Biotech Co., Ltd.

The agreement, which includes a tentative purchase price of up to $30 million, is to jointly develop SNG, a rapid-acting antidepressant natural medicine.

Beijing Wonner's SNG is a natural product extracted and purified from Paeoniae Radux Alba, a traditional Chinese medicine.

The final purchase price will be determined based on a third party evaluation, Shineco said.

The acquisition of Beijing Wonner is not only a strategic plan for innovative medicines, but also an advanced plan for the sharp increase in patients with depression recovering from COVID-19 pandemic," commented Jennifer Zhan, CEO of Shineco.

TYHT is at $11.79 currently. It has been trading in the range of $2.45- $19.40 in the past 52 weeks.