- Completion of new capital injection in principal
subsidiary Yao Fang Shanghai
- Initiation to list shares of principal subsidiary Yao
Fang Shanghai on the STAR Market
- 111 firmly committed to maintaining Nasdaq listing
status
SHANGHAI, Aug. 20, 2020 /PRNewswire/ -- 111, Inc. ("111" or
the "Company") (NASDAQ: YI), a company dedicated to digitally
connecting patients with drugs and healthcare services in
China, today announced the
completion of new capital injection in its principal subsidiary and
a strategic plan to expand its access to China's capital markets.
On August 17, 2020, Yao Fang
Information Technology (Shanghai)
Co., Ltd. ("Yao Fang Shanghai"), the principal operating subsidiary
of 111 in China, completed the
capital injection from new investors. According to the investment
agreements, the new investors invested in Yao Fang Shanghai an
aggregate of RMB419.82 million
(approximately US$60.49 million), of
which RMB24.44 million (approximately
US$3.52 million) was from the
management team, at a pre-money valuation of US$1.2 billion (approximately RMB8.33 billion).
In addition to the new capital injection, 111 will seek to list
the shares of Yao Fang Shanghai on the Shanghai Stock Exchange's
Sci-Tech innovAtion boaRd (the "STAR Market") within the next three
years, subject to regulatory approvals and market conditions. The
Company's plan to list Yao Fang Shanghai shares on the STAR Market
is for the purpose of accessing a new source of growth capital in
China, raising the Company's
profile with Chinese investors and potential customers, and
strengthening its leading digital healthcare platform in
China.
In connection with the capital injection, the investors have
agreed to take all necessary and reasonable steps to facilitate the
proposed listing of Yao Fang Shanghai on the STAR Market. In the
event that Yao Fang Shanghai's proposed listing is not completed in
three years, the investors may choose to exercise their option to
require Yao Fang Shanghai or its controlling shareholder Yao Wang
Corporation Limited, a wholly-owned subsidiary of 111, to redeem
all or part of the equity interests then owned by such investors at
a price equal to the initial investment amount plus accrued
interest at a simple annual rate of 6%.
Mr. Junling Liu, Co-Founder,
Chairman, and Chief Executive Officer of 111, commented, "The STAR
Market features some of China's
most promising technology companies. A listing on the STAR Market
would allow us to tap into new capital resources in China's dynamic capital market, and provide
opportunities for domestic investors to invest in our
transformative and innovative business and China's rapidly growing healthcare
sector."
"Our intention to pursue the listing of our principal subsidiary
in China complements the listing
of our ADSs on NASDAQ, which has allowed the Company to access the
global capital markets and maintain a strong international
corporate profile that will continue to help us build partnerships
with world-leading pharmaceutical companies to facilitate their
drug commercialization efforts in China."
"The capital injection in our principal subsidiary in
China further strengthened our
financial flexibility to seek out and capitalize on strategic
market opportunities, solidify our leadership in China's digital healthcare market, accelerate
business growth and expedite our next phase of expansion," Mr. Liu
concluded.
The proposed listing of Yao Fang Shanghai on the STAR Market is
subject to Yao Fang Shanghai obtaining regulatory approvals and
market conditions. The terms of the proposed listing have not yet
been determined by our board of directors or approved by the
Shanghai Stock Exchange. This press release does not, and is not
intended to, constitute an offer to sell or a solicitation of an
offer to purchase any securities in the
United States, China or
elsewhere, and it does not, and is not intended to, constitute an
offer, solicitation or sale of any securities in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," "target,"
"confident" and similar statements. Among other things, the
Business Outlook and quotations from management in this
announcement, as well as 111's strategic and operational plans,
contain forward-looking statements. 111 may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Such statements are based upon management's current
expectations and current market and operating conditions and relate
to events that involve known or unknown risks, uncertainties and
other factors, all of which are difficult to predict and many of
which are beyond the Company's control. Forward-looking statements
involve inherent risks, uncertainties and other factors that could
cause actual results to differ materially from those contained in
any such statements. Potential risks and uncertainties include, but
are not limited to, uncertainties as to the Company's ability
comply with extensive and evolving regulatory requirements, its
ability to compete effectively in the evolving PRC general health
and wellness market, its ability to manage the growth of its
business and expansion plans, its ability to achieve or maintain
profitability in the future, its ability to control the risks
associated with its pharmaceutical retail and wholesale businesses,
and the Company's ability to meet the standards necessary to
maintain listing of its ADSs on the Nasdaq Global Market, including
its ability to cure any non-compliance with Nasdaq's continued
listing criteria. Further information regarding these and other
risks, uncertainties or factors is included in the Company's
filings with the U.S. Securities and Exchange Commission. All
information provided in this press release is as of the date of
this press release, and 111 does not undertake any obligation to
update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
applicable law.
About 111, Inc.
111, Inc. (NASDAQ: YI) ("111" or the "Company") is a company
dedicated to digitally connecting patients with drugs and
healthcare services in China. The
Company provides hundreds of millions of consumers with better
access to pharmaceutical products and medical services directly
through its online retail pharmacy and indirectly through its
offline pharmacy network. 111 also offers online medical services
through its internet hospital, 1 Clinic, which provides consumers
with cost-effective and convenient online consultation and
electronic prescription services. In addition to providing direct
services to consumers through its online retail pharmacy, 111 also
enables offline pharmacies to better serve their customers.
The Company's online wholesale pharmacy, 1 Drug Mall, serves as a
one-stop shop for pharmacies to source a vast selection of
pharmaceutical products. The Company's New Retail platform, by
integrating the front and back ends of the pharmaceutical supply
chain, has formed a smart supply chain, which transforms the flow
of pharmaceutical products to pharmacies and modernizes how they
serve their customers.
For more information on 111, please visit:
http://ir.111.com.cn/.
For more information, please contact:
111, Inc.
Investor Relations
Email: ir@111.com.cn
111, Inc.
Media Relations
Email: press@111.com.cn
Phone: +86-021-2053 6666 (China)
GCM Strategic Communications
IR Counsel
Email: 111.ir@gcm.international
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SOURCE 111, Inc.