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Ossen Innovation to buy stake in China-based medical device company

Staff Writer | July 9, 2016
Ossen Innovation has entered into a non-binding letter of intent or LOI with America-Asia Diabetes Research Foundation, a California corporation that owns 90.27 percent of the equity interests of San MediTech (Huzhou).
Ossen Innovation
Acquisition   Ossen plans to spin off its steel manufacturing business
Ossen Innovation intends to acquire all of the issued and outstanding equity interests of the America-Asia Diabetes Research Foundation in exchange for 81.24 million of the company's ordinary shares. Upon completion of the acquisition, Ossen Innovation would indirectly own 90.27 percent of San MediTech.

San MediTech is a China-based medical device company engaged in the research, development and marketing of glucose control products, and the shareholders of the Foundation.

San MediTech's proprietary Dynamic Glucose Monitoring System or DGMS provides continuous, real-time monitoring of glucose level in diabetes patients, with two patents granted in China and several patents pending both in China and the U.S. DGMS has been approved by the China Food and Drug Administration and has entered into clinical trials in the U.S. for DGMS.

In connection with the acquisition, Ossen plans to spin off its existing pre-stressed steel manufacturing business, including all existing liabilities, immediately following the completion of the acquisition.