Yichang HEC privatization progresses, key pre-condition fulfilled

Yichang HEC ChangJiang Pharmaceutical (HKEX:1558) and Sunshine Lake Pharma announced today that they have fulfilled Pre-Condition (1) of the proposed pre-conditional privatization, meaning that approval, filing or registration relating to governmental approvals have been obtained. This follows confirmation that the SAFE approval is not applicable to the merger, earlier confirmations that the NDRC approval for the Merger has been obtained and the MoC approval is not applicable to the Merger. The remaining pre-condition, relating to the listing application process with the SFC and the Stock Exchange, is still in progress. The privatization, structured as a merger by absorption, remains conditional upon further approvals, including those from the Listing Committee of the Stock Exchange and the China Securities Regulatory Commission, as well as the effectiveness of the merger agreement. Shareholders are advised to exercise caution when dealing in the company's securities.