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The company will obtain control through VIE agreements.
Jin Medical International Ltd. (Nasdaq: ZJYL) has entered into VIE agreements to obtain contractual control over Huaxia Qiying, securing the right to receive substantially all economic benefits. The company, alongside Erhua Med, will not acquire legal title to the equity interests of Chenglan Kangxu or Huaxia Qiying solely as a result of these agreements.
The total consideration for the transaction amounts to $159.4 million.
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