IFMK stock surged higher in after-hours trading on March 18, 2020, after the company announced it was acquiring 70% of equity interests in Xiamen DL Medical Technology Co.
iFresh, Inc. (Nasdaq: IFMK), a leading Asian American grocery supermarket chain and online grocer, announced today that the Company has entered into a purchase agreement, pursuant to which the Company agreed to acquire 70% of equity interests in Xiamen DL Medical Technology Co. (“Xiamen DL”), Ltd., specializing in research and development of technology, manufacturing, and distribution of medical and non-medical protective masks, cotton spinning textiles, knitwear, daily necessities, kitchen and toilet appliances, and other related goods.
Pursuant to the terms of the Purchase Agreement (the “Agreement”), the Company shall pay Xiamen DL $600,000 in cash and issue 900,000 shares of common stock of the Company in consideration for the 70% equity interests in Xiamen DL. The closing of the acquisition is subject to customary terms and conditions as set forth in the Agreement.
Mr. Long Deng, Chief Executive Officer and Chairman of iFresh, commented: “This acquisition is a major step forward in broadening our business into a new market. Our board of directors have been extremely supportive of the transaction given the current COVID-19 outbreak and the surging demand of medical products. Currently, Xiamen DL has been producing 400,000 pieces of medical and non-medical masks daily using their maximum production capacity to meet local demands as well as global orders. iFresh’s commitment to serve the community as a leading grocery supermarket chain has allowed us to be innovative in not only providing our residents with their daily life needs, but also necessary supplies during the current coronavirus pandemic. The Company has been offering free masks to the elderly residents to help prevent them from getting sick. We believe the acquisition of Xiamen DL will enhance our product offering range and will drive long-term growth opportunities for our shareholders.”