Pharma Research Products Co., Ltd (KOSDAQ:A214450) signed a memorandum of understanding to acquire 48.74% stake in BIOCND Inc. (XKON:A217950) from a group of shareholders for KRW 29.4 billion on November 29, 2017. Pharma Research Products Co., Ltd (KOSDAQ:A214450) signed an agreement to acquire 48.74% stake in BIOCND Inc. (XKON:A217950) from a group of shareholders for KRW 29.4 billion on January 23, 2018. Pharma Research Products Co., Ltd will acquire 1.7 million shares and pay 10% of the entire bill on the contract signing date and balance on March 21, 2018. Pharma Research Products Co., Ltd will pay KRW 23.01 billion from own cash and will issue 0.1 million treasury stock and 0.02 million shares for the acquisition. The transaction is subject to adjustment. As per the amendment report dated January 26, 2018, Pharma Research Products Co., Ltd and Sangsoo Jung will acquire 41% stake in BIOCND Inc. from Dong-Ho Song and six others for KRW 25.7 billion. Under the terms of transaction, Pharma Research Products Co., Ltd and Sangsoo Jung will pay KRW 18.7 billion in cash and will issue 0.012 million new shares. Pharma Research Products Co., Ltd and Sangsoo Jung will pay 10% of consideration on contract signing and balance on March 28, 2018. As per amendment on March 28, 2018, Pharma Research Products Co., Ltd, Sangsoo Jung, and four others will acquire 42.45% stake in BIOCND Inc. for KRW 25.9 billion. Pharma Research Products will acquire 39.7% stake and Sangsoo Jung, and four others will acquire 2.75% stake through this transaction. Pharma Research Products Co., Ltd will hold 47.61% stake upon completion. On March 28, 2018, the deal is partially completed as Pharma Research Products Co., Ltd has acquired 0.33 million shares.

The transaction will be funded by own cash and treasury stock. Board of Directors of Pharma Research Products Co., Ltd made a resolution in favor of the transaction on January 22, 2018. The scheduled date of acquisition is March 21, 2018. The transaction is later expected to be completed on March 28, 2018. Hanmi Accounting Corporation acted as external rating institution.