Hainan Shennong Technology Co., Ltd. (SZSE:300189) intends to acquire 51% stake in Hainan Baolu Aquatic Technology Co., Ltd. from Hainan Lnlan Biotechnology Co., Ltd. on June 28, 2022. The consideration shall be payable through combination of cash and share issuance. Hainan Shennong Technology Co., Ltd. shall pay 55% of consideration through share issuance while remaining 45% payable through cash.

The cash portion of the transaction will be financed through funds raised by Hainan Shennong Technology Co., Ltd. through private placement. As of March 31, 2022, Hainan Baolu Aquatic Technology Co., Ltd. has reported total assets of CNY 92.92 million and net assets of CNY 72.96 million. The transaction still needs approvals from board of directors after audit evaluation,shareholders of Hainan Shennong Technology Co., Ltd, Shenzhen Stock Exchange and China Securities Regulatory Commission.

The transaction has been approved by the Board of Directors of Hainan Shennong Technology Co., Ltd. and shareholders of Hainan Lnlan Biotechnology Co., Ltd.