Thursday April 8, 2:11 pm Eastern Time
Company Press Release
Biofarm Increases Its Shareholding in Rocky Mountain Ginseng, Inc.
LONDON--(BUSINESS WIRE)--April 8, 1999--Biofarm, Inc. (BIOF) is pleased to announce that since the filing of its 10QSB it has increased its shareholding in Rocky Mountain Ginseng, Inc. (''RMGG''), from 8% to 295.
In addition, the allocation of funds by Biofarm to RMGG, based upon the agreed variation of the original Memorandum of Understanding, entitled Biofarm to 65% (14,840,092) of RMGG's 22,830,912 issued ordinary shares. This will result in Biofarm holding a total of 20,840,092 ordinary shares which equates to 55% of RMGG's issued and outstanding ordinary stock.
Biofarm's investment has allowed RMGG to complete all aspects of the purchase of Fuzhou Fujian Drugs Company Ltd., China (the ''Company'') and fund its working capital needs. Fuzhou Fujian Drugs Company Ltd. is to be renamed ''Rocky Mountain Fuzhou Fujian Drugs Co.''
RMGG's success in obtaining productive rights and access to distribution for its products in the World's largest market for Ginseng, and RMGG Management's ability to accomplish this at relatively little cost, resulted in Biofarm increasing its shareholding.
Biofarm S.A.'s (a pharmaceutical subsidiary of Biofarm Inc.) and RMGG's management intend to cooperate on developing market opportunities for Biofarm S.A.'s natural medicines in China and RMGG's Ginseng products in Romania and central Europe.
On March 15, 1999 the Foreign and Economic Trade Committee of the Fuzhou Peoples Municipal Government approved the share purchase between Fuzhou Fujian Drugs Co Ltd. and RM Ginseng Canada Ltd. (the Canadian subsidiary of RMGG.)
Approval was given to obtain a business license for the Company to produce and market certain drugs in China by the Ministry of the Industrial and Commercial Administration in Beijing.
The Fujian Hygiene Control Bureau has issued a ''Drug Production Certificate'' to the Company and on March 19, 1999 the Fujian Drug Control Bureau granted the Company a ''Drug Production Qualification Certificate''.
RMGG now has the right to independently produce and market RMGG's products in China with these approvals and licences.
The Company commenced construction of a new production and administration facility in Fuzhou's popular Hong Shan Industrial Park on March 22, 1999. The facility, once completed will comply with China's new Drug Production Standards enabling the Company to market products internationally as well as throughout the country.
The Company's expanded production base in Hong Shan will be able to produce Ginseng Capsules and two new healthy food products unique to China. These products enjoyed wide acceptance according to market tests held in Fuzhou and Shanghai.
Biofarm's injection of funds will allow RMGG to continue its business plans in China. Presently, RMGG is manufacturing the complete line of FF Drugs Company products in the existing plant until the new GMP (''Good Manufacturing Practices'') factory is operational.
Biofarm is pleased to announce RMGG's signing of a distribution agreement with QIANGZHOU Xin Fu Lar Health Products Co. Ltd., a major wholesaler in Qiangzhou, an affluent industrial city located approximately 150 kilometers (90 miles south of Fuzhou).
Biofarm intends on responding to the market with further news releases as the Company develops.
The foregoing announcement contains forward-looking statements that necessarily involve the risks and uncertainties involved in any business venture, especially one with international ramifications.
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Contact:
Biofarm, London
011441715888864
or
Desiree Pierson, 610/495-8413
Rob Kulat: 732/219-5816
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