NEW
YORK, Oct. 12, 2023 /PRNewswire/ -- ETAO
International Co. Ltd. announces its plan of reorganization to
dispose seven of its twelve consolidated affiliates subsidiaries to
trim its operations and improve profitability. On October 11, 2023, pursuant to the terms of the
Exclusive Business Cooperation Agreement, ETao Healthcare, the
Company's indirectly subsidiary in China, notified Zhichao Medical Technology
(Hunan) Co., Ltd., Beijing DNurse
Technology Co., Ltd., Kang Ning
(Heng Yang) Healthcare Management Co., Ltd., Tianlun (Guiyang) Buyun Buyu Hospital Co., Ltd., Qianhu
Medical Management (Jiangxi) Co.,
Ltd., Chain Workshop (Beijing)
Co., Ltd., Baihui (Beijing)
Biotech Co., Ltd. and each of their respective equity holders of
the immediate termination of the Exclusive Business Cooperation
Agreement, the Exclusive Option Agreement, the Share Pledge
Agreement, the Timely Reporting Agreement and the Powers of
Attorney ("VIE Agreements"). ETao Healthcare is entitled to collect
the accrued and unpaid Service Fee, which is 85% of the Monthly Net
Income of each disposed VIE pursuant to the term of the Exclusive
Business Cooperation Agreement.
Upon termination of the above-referenced VIE agreements, ETAO
retains control over these five VIEs, namely, Changsha Zhenghe
Orthopaedics Hospital Co., Ltd., Changxing Zhizhou Hospital Co.,
Ltd., Civil Hospital (Mengzhou City) Co., Ltd., Hangzhou Six
Dimension Dental Medical Technology Co. Ltd. and Alliance Insurance
Brokerage Co., Ltd.
None of the seven disposed VIEs had incurred any profit and have
an aggregate net loss of $7.5 million
for the fiscal year ended December 31,
2022. The disposition makes is easier for us to streamline
our business activities, focus on its core competitiveness and
accelerate the integration process, which is expected to decrease
our expense and increase revenue in the long run.
About ETAO International Group
ETAO International Group ("ETAO"), a Cayman
Islands company, aims to be the leading digital healthcare
group providing telemedicine, hospital care, primary care,
pharmacy, and health insurance covering all life stages of
patients. ETAO became a public company listed in Nasdaq through
merging with Mountain Crest Acquisition Corp. III (MCAE) on
Feb 21, 2023. "ETAO" brand means
"Best Medical Way" with transformative medical care and
unparalleled service. As a holding company with no material
operations of its own, ETAO conducts substantially all of the
operations through five variable interest entities ("VIEs") located
in China, which have entered into
a series of the VIE Agreements with certain indirect subsidiaries
of ETAO. For accounting purposes, ETAO is the primary beneficiary
of the VIEs' business operations through the VIE Agreements, which
enable ETAO to consolidate the financial results in its
consolidated financial statements under U.S. GAAP for four of the
VIEs and for the one remaining VIE, in which ETAO does not own a
majority interest, its financial statements will not be
consolidated with the financial statements of ETAO. ETAO aims to
provide best-in-class internet medical services, such as artificial
intelligence and big data technologies, to improve health care
delivery and quality in specialized clinics and hospital settings.
ETAO's is in the process of building a platform that is seamlessly
integrated based on its ability to combine technology and health
sciences.
Media Contact:
Wilson
Liu
Tel:347-306-5134
wilson.liu@etao.world
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SOURCE ETAO International Co., Ltd.