CLAREMONT, CA– (September 13, 2016) – Kiwa Bio-Tech Products Group Corporation (OTC: KWBT). On September 7, 2016, Kiwa Bio-Tech Products Group Corporation (the “Company”) executed an agreement to acquire a seventy percent (70%) interest in Tangshan Deruifeng Technology Co., Ltd. (“Deruifeng”) for approximately 14,000,000 RMB (approximately US$ 2 million) to be paid 50% in cash (in RMB) and 50% in Kiwa common stock priced at eighty percent (80%) of the market price of the Company’s stock on the effective date of the agreement. Founded in Jan, 2010 and located in Tangshan City, Hebei Province in North China, Deruifeng is a new style fertilizer enterprise which has been conducting research and development, manufacturing and sales. Company management believes that Deruifeng adds significant resources and experience in the development and marketing of fertilizers in China. Over the past few years, Deruifeng has been one of the principal OEM manufacturers for Kiwa’s products.
Mr. Yao Run Lin, the Company’s vice president stated that, “This acquisition plays a strategic role in Kiwa’s development in the rapidly growing fertilizer market in China. By acquisition of a majority interest in Deruifeng, Kiwa is able to integrate and streamline its supply chain and in crease its production capacity.” This should result in the upgrading of product quality, while achieving significant cost reduction and broadening the range of Kiwa’s products.” The acquisition increases the manufacturing capacity of Kiwa by 350,000 metric tons annually – which at full capacity represents over $100,000,000 in revenue. Kiwa is now poised to participate in the transition plan instituted by the Chinese Government support bio-based fertilizers as opposed to traditional chemical based fertilizers.
