Ossen To Acquire San MediTech; To Spin-Off Existing Business - Quick Facts

(RTTNews) - Ossen Innovation Co., Ltd. (OSN) announced a share exchange agreement with America-Asia Diabetes Research Foundation, a California corporation that owns 90.27% of the equity interests of San MediTech (Huzhou) Co. Ltd., a China-based medical device company, and the shareholders of the Foundation. Ossen Innovation has agreed to acquire all of the issued and outstanding equity interests of the Foundation in exchange for up to 81.243 million of the company's ordinary shares.

San MediTech's Dynamic Glucose Monitoring System provides continuous, real-time monitoring of glucose level in diabetes patients. Upon completion of the deal, Ossen Innovation will indirectly own 90.27% of San MediTech.

Ossen also entered into an agreement to spin-off its existing pre-stressed steel manufacturing business, including all existing liabilities, immediately following the completion of the acquisition. An entity affiliated with Liang Tang, Chairman of the company, will acquire all of the equity of the company's subsidiary, which indirectly owns all of the company's existing operating subsidiaries, in exchange for the forfeiture and cancellation of all 11.85 million ordinary shares of the company currently held by Tang.