Happiness Development to acquire healthcare product distributor at $12M equity valuation

• Happiness Development Group (NASDAQ:HAPP) has signed an equity transfer agreement to acquire Chinese healthcare product distributor- Fuzhou Hekangyuan Trading- at $12M valuation.
• Under the agreement, Happiness will issue 10M Class A shares to Hekangyuan shareholders in addition to a cash payment of $8M.
• Hekangyuan generated revenue of $17.6M and $13.5M, with net income of approximately $790,000 and $579,000 for the fiscal year ended December 31, 2021 and 2020, respectively.
• "Hekangyuan has been known for its healthcare product distribution network in Fuzhou area and we have been in talk with them about the acquisition in the last several months....At the same time, with the successful expansion of our online sales, we will also help Hekangyuan to fully utilize its advantages of supply chain management and distribution abilities," said CEO Xuezhu Wang.
• HAPP stock is up 7% premarket to trade at $0.39.
• Earlier: Happiness Development to raise $10M for supporting its international expansion