Information  X 
Enter a valid email address

Orchid Capital Ltd (ORC)

  Print      Mail a friend

Wednesday 26 October, 2005

Orchid Capital Ltd


Orchid Capital Ltd
26 October 2005

                                                 Suite 3 Ground Floor
                                                   610 Murray Street
                                                  West Perth WA 6005
                                                  T: +61 8 9321 3664
                                                  F: +61 8 9322 6887
                                                [email protected]

26th October 2005

Australian Stock Exchange
Company Announcements Office
By Electronic Lodgement


Orchid Capital (ASX: ORC) is pleased to announce that it has entered into an
Investment Agreement with the Singapore-based pharmaceutical group, Xingling
International Pte. Ltd. ('Xingling' or the 'Company').

Orchid will invest S$250,000 (circa £84,500 or A$197,000) to acquire a majority
stake (51%) in the Company, subject to due diligence and shareholder approval.

Xingling has an exclusive distribution agreement with Topsun Pharmaceuticals &
Chemicals Trading Company Ltd (Topsun), one of China's largest pharmaceutical
groups, to distribute its entire product portfolio in Singapore.  Xingling is
also finalizing a worldwide (excluding China and Taiwan) exclusive distribution
agreement - a condition precedent to the Investment Agreement.

Xingling is currently in the process of registering 30 of Topsun's Traditional
Chinese Medicine (TCM) products and has achieved In-Principle Approval from the
Health Authority of Singapore.

Xingling's subsidiary company, Teleiospharma Pte. Ltd., will utilise its
Singapore pharmaceuticals licence to distribute a range of non-herbal
pharmaceutical products from Chinese suppliers.

Xingling intends to develop a portfolio of pharmaceutical products and intends
to develop a standardized process for the approval of TCM products outside

Xingling's efforts are assisted by IE Singapore, a Singapore government body
that supports Singaporean companies to expand their position in global export

The key features of the Investment Agreement are:

1.   Orchid Capital will subscribe for 510 new shares in Xingling for S$250,000 
     which will represent 51 percent of the total issued capital of Xingling.

2.   Orchid Capital will make available an interest free loan facility to 
     Xingling up to a limit of S$250,000, which is to be used primarily as a 
     working capital facility.  The facility is to be fully repaid within five 
     years from first drawdown.

3.   Xingling acquiring Teleispharma Pte. Ltd. and signing the worldwide 
     exclusive distribution agreement with Topsun.

4.   All government and regulatory approvals or waivers necessary are obtained, 
     including but not limited to all approvals or waivers required by the 
     Singaporean Government, the Australian Government, ASX.


Press enquiries:  Julian Sandt - Chief Executive Officer, Orchid Capital Limited
                  00 65 9658 9940

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                           

a d v e r t i s e m e n t