In a move that will catch investors’ eyes across the globe, China Jo-Jo Drugstores Inc. announced a reverse merger transaction with Renovation Investment Company. The deal with Renovation, which is a Hong Kong Company, was announced on September 17th and will allow China Jo-Jo to acquire control of Renovation’s retail pharmacy chain business in the People’s Republic of China.
Currently, the pharmacy operates 20 stores throughout the provincial capital of the Zhejian Province with its most recent addition opening only last week. The pharmacy chain generated an impressive $6.8 million of net income and over $44.8 million of revenue in 2009. These figures dwarfed the 2008 fiscal period for the young company.
China Jo-Jo is led by Dr. Lei Liu who has a noted name in the industry and a very aggressive approach to management. When asked about this merger, Dr. Liu was quoted as saying, ”We are pleased to be a part of the United States capital markets which will facilitate both our immediate growth plans in the Zhejiang province and our long-term strategy to branch out into other provinces.”
Due to the merger transaction, China Jo-Jo changed its corporate name from “Kerrisdale Mining Corporation” to accurately reflect the business of the company. Perhaps more important than the name change is the fact that the company will break into the United States markets with a sound business plan as evidence by the reverse merger.
China Jo-Jo has started to catch the attention of investors with this reverse merger and innovative technology. With this news and a corporate structure in place, China Jo-Jo may be a hidden gem.