Q&M Dental Group QC7 has agreed to transfer its 80% beneficial stake in Shanghai Chuangyi Investment & Management Co., Ltd. to Shanghai Zhibao Investment Consulting Co., Ltd for a consideration of RMB500,000 ($93,533.38).
Shanghai Q&M Management & Consulting Co., Ltd., through which Q&M owns its stake in Shanghai Chuangyi, entered into a transfer agreement with Wong Kee Hau, Wu Jun and Shanghai Zhibao Investment Consulting on June 19.
Q&M has also entered into a settlement and termination deed with Wong and Wu on June 19 where all parties have agreed to a full and final settlement of any disputes, claims and counter claims between the parties. The disputes were in relation to the breach of a non-competition agreement (NCA) that was entered into by Aoxin Q & M Dental Group Limited (Aoxin), Wong, Wu and Wu Jian on Nov 26, 2012. The benefit of the NCA was subsequently assigned to Q&M on Feb 18, 2021 through a deed of assignment between Aoxin and itself.
Shanghai Chuangyi is a company that does investment management, technology development, technology transfer, technical services, technical consulting in the field of dental materials and so on. Its shareholders are Shanghai Q&M Management & Consulting Co., Ltd. and Wu Jun, which owns 80% and 20% respectively.
Q&M had acquired its 80% beneficial interest in the shares in Shanghai Chuangyi through a sale and purchase agreement signed between Aoxin and itself on March 30, 2017.
Q&M’s acquisition at the time was to mitigate any potential conflicts between Aoxin and itself where Aoxin, as part of its initial public offering (IPO) process, had undertaken not to engage in the provision of dental services or the provision, distribution or sale of dental equipment and supplies, in southern China which includes Shanghai.
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As at FY2022 ended Dec 31, 2022, Shanghai Chuangyi’s net asset value (NAV) stood at RMB1.4 million.
Shares in Q&M closed 1 cent lower or 3.33% down at 29 cents on June 20.
