Human Health Holdings clarifies acquisition of dental clinic operator

Human Health Holdings (HKEX: 1419) has released a supplemental announcement offering further insights into its acquisition of 75% of a target company that operates dental clinics in Hong Kong. The consideration was determined based on an independent valuation of HK$40.7 million as of September 30, 2024. The valuation utilized comparable companies, adjusted for geographic and size differences. The vendor and Dr. Cheung guarantee an annual audited profit after tax of HK$7.4 million for the guarantee period. The agreement includes a put option, with the price dependent on the average net profit of the target company and capped at HK$30 million. The exercise of the put option will depend on the profitability of the Target Company. An audit adjustment of HK$2,188,151 was made to the audited net profit to reflect impairments on amounts due from a director.