The profit guarantee is secured by an escrow arrangement and all of the ordinary shares in the capital of Aoxin held by Health Field Enterprises Limited, says Q&M.
Q&M Dental Group has issued a letter of demand to Dr Shao Yongxin, the executive director and group CEO of Aoxin Q&M (SGX:1D4
) . As at April 17, Q&M owns about 32.78% of Aoxin’s shares.
According to Q&M, Shao had provided certain profit guarantees in its circular dated Oct 14, 2016, in connection with the acquisition of Shenyang Xinao Hospital Management. The hospital was acquired from Shao by Q&M’s subsidiary, Shanghai Q & M Investment management & Consulting Co. Ltd. In the circular, the profit guaranteed was RMB122,434,750 (or approximately $25.67 million then). The profit guarantee period was stipulated to be for 12 years from July 1, 2014.
