HK Stock Market Move | KAISA HEALTH (00876) dropped by 30% and plans to issue new shares to acquire pharmaceutical business; proposed stock consolidation ratio is 50 to 1.

KAISA HEALTH (00876) dropped by 30%, as of the time of publication, it dropped by 30.77% to 0.135 Hong Kong dollars, with a trading volume of 5.9903 million Hong Kong dollars. In terms of news, KAISA HEALTH announced last night that it will acquire all the equity of Chongxing from KAISA GROUP for a price of 21.6 million RMB (approximately 24.41 million Hong Kong dollars), to be paid through the issuance of 139 million shares at a price of 0.175 Hong Kong dollars, a discount of 10.26% compared to the closing price on March 18. After the completion of the acquisition, the company will hold 54.84% of Qinghai Pharmaceutical through Chongxing, which is engaged in the research, production, and sales of pharmaceuticals (including narcotic drugs) in China. At the same time, the company proposes to consolidate the shares at a ratio of 50 to 1. Upon effectiveness, the trading unit size will be changed from 10,000 shares to 2,000 shares.