Dehaier Medical Systems Gets $20 Million Investment From Liaison Interactive

Dehaier Medical Systems Ltd. DHRM revealed it struck a definitive securities purchase agreement with Hangzhou Liaison Interactive Information Technology Co. Ltd. According to the company, Liaison Interactive has agreed to acquire 11.11 million restricted common shares for an aggregate amount of US$20.0 million.

Dehaier said that the Purchase Price was US$1.80 per share. That represented a 35 percent premium to its closing price of $1.33 on April 27. The company stated that in consideration of the payment by the Buyer of the Purchase Price, the acquirer and its nominees would also get warrants to acquire one million restricted common shares of the Company. However, the price of such a stock would be US$2.20 per share.

The company's CEO, Ping Chen, commented "The Liaison Interactive investment dramatically improves our ability to expand our wearable medical device business and to launch other new smart wearable devices and mobile medical solutions over the next few years. The investment also helps optimize our overall strategies, increase our market penetration and strengthen our competitiveness in the medical wearable device segment."

He added, "Liaison Interactive is committed to providing mobile internet products and services for its customers, including operation systems and software solutions platform, game publishing, distribution and smart wearable devices, which are currently a major focus of its business. Liaison Interactive entered the virtual reality ('VR') smart terminal market in 2015, acquiring 'Avegant Glyph' brand of hardware and software products. 'Avegant Glyph' is a retina glasses using VR technology, providing users ultimate visual experiences. We believe that by investing in the Company, Liaison Interactive can open up and further expand its strategic presence in the smart hardware space within the medical field."

Following this, shares of the company traded 71.97 percent higher on Thursday.