China Northwest Biotech terminates Merger Agreement with Chong Yang
China Northwest Biotech Inc. has announced that it has terminated the acquisition of Xian Chong Yang Sci-Tech Stock Co. (Chong Yang). The decision was taken due to the inability of Chong Yang to transfer assets to its parent company, BVI-domiciled Top Sonic Inc., and with the fact tha China Northwest has not provided financial reports in time.
Michael Dooley, the CEO of China Northwest, has explained the board’s resolution to terminate merger with Chong Yang, “We have exhausted all options to resolve the outstanding issues and have given The Chong Yang Group more than ample time to deliver what was required by the merger agreement. Since Chong Yang didn’t adhere to what was agreed originally in the merger agreement, the company has no choice but to terminate the merger.”
The management of China Northwest considers that at this stage termination of merger agreement with Chong Yang was necessary, to enable other potential business opportunities to move forward. At the moment, the company is in talks for mergers and acquisitions with several potential candidates.