Xuerong Biotech gets $8.4m loan backing amid ownership shift

Shanghai Xuerong Biotechnology (SZSE:300511) announced it will receive loans totaling 60 million RMB (approximately $8.4 million USD) from its new and old controlling shareholders, Shanghai Wanzi Qianhong Intelligent Technology and Chairman Yang Yongping, respectively. Wanzi Qianhong will provide 40 million RMB, while Yang Yongping will provide 20 million RMB. These loans are aimed at supporting the company's business development and meeting its working capital needs, with interest rates no higher than prevailing bank loan rates. This financial backing comes as Yang Yongping is transferring control of the company to Wanzi Qianhong, pending Shenzhen Stock Exchange compliance confirmation, via a share transfer and voting rights delegation agreement. The loans do not require any guarantees, mortgages or pledges from Xuerong, and can be drawn down in tranches. The loan agreement with Yang Yongping supersedes a previous agreement and will be valid for one year. Additionally, Yang Yongping previously provided 9 million RMB in interest-free loans earlier this year.