[ET Net News Agency, 4 October 2018] Huabao International (00336) said its indirect
wholly-owned subsidiary High Praise agreed to sell VMR Products, 62.7% owned by High
Praise.
The company estimates that the final consideration is to be in the range of US$48.3
million after adjustments, and that the proportion of the consideration to be received by
the group is unlikely to be less than US$30.286 million after adjustments.
It is expected that the disposal will result in a gain for the financial year ending 31
March 2019 which is estimated to be in the region of US$23.537 million. The net proceeds
of the disposal will be used for working capital and general corporate purpose of the
group.
VMR Products was formed in the United States in 2009, with its headquarters in Miami. It
is a company independently engaged in the design, engineering, production, assembly,
integration, manufacture, marketing, sale, supply and distribution of electronic
cigarettes, both on its own behalf and as an original equipment manufacturer for selected
third parties.
Following consummation of the disposal, VMR Products shall cease to be a subsidiary of
the group. (SC)