TORONTO, Jan. 17, 2013 /CNW/ - China Health Labs & Diagnostics Ltd.
("China Health" or the "Company") (TSXV: CHO) (OTCQX: CHLBF) announces
that it has voluntarily withdrawn from the OTC Market's premier tier,
OTCQX International ("OTCQX") and trades on the OTC Pink Current tier
effective on January 17, 2013. The Company's board of directors
approved the voluntary withdrawal of the Company's shares from trading
on the OTCQX primarily due to the thin trading and the costs associated
with regulatory compliance exceeding the benefits. Upon removal of
listing, the Company shall cease to file reports with the US Securities
and Exchange Commission.
About China Health Labs & Diagnostics Ltd.
China Health, operating in China as the Biochem Group, is a leading
diagnostic lab solution provider for the public healthcare industry in
China. The Company develops and sells Biochem Group branded and
third-party medical diagnostic products and services to diagnostic
facilities in China. Customers include large urban hospitals, rural
hospitals, Chinese defense and rescue operations, the Beijing
government and third-party distributors.
The Company intends to continue its growth by focusing its efforts on
expanding its sales network in three areas where it provides
proprietary solutions, has limited competition and which are supported
by Chinese government policies and budgets: BK Clinlab total lab
solutions for rural hospitals and clinics, POCT solutions for military
and emergency rescue services, and food safety solutions for large
cities in China. In 2011, China Health increased its revenues by 35%
to $45.6 million, and increased its installed base of BK Clinlab total
solution diagnostic labs ("BK Clinlabs") from 210 at the start of 2011
to 899 rural hospitals to date. In addition, the Company grew revenues
from its overall total lab solutions business by 99% from 2010, which
increased gross margins to 44% in 2011 as compared to 39% in 2010.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements and information
that are based on the beliefs of management and reflect China Health's
current expectations. When used in this press release, the words
"estimate", "project", "belief", "anticipate", "intend", "expect",
"plan", "predict", "may" or "should" and the negative of these words or
such variations thereon or comparable terminology are intended to
identify forward-looking statements and information. The
forward-looking statements and information in this press release
includes information relating to the voluntary withdrawal from the
OTCQX, expansion of the Company's business through its sales network in
areas where it has proprietary products, limited competition and strong
government support. The forward-looking information is based on
certain assumptions, which could change materially in the future,
including the assumption that the Company will be able to expand its
sales network and business. Such statements and information reflect
the current view of China Health with respect to risks and
uncertainties that may cause actual results to differ materially from
those contemplated in those forward-looking statements and
information. By their nature, forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause our
actual results, performance or achievements, or other future events, to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such factors include, among others, the risk that the Company may not
proceed with its voluntary withdrawal from the OTCQX or that the
Company may not be able to expand its business as expected through its
sales network in any of the areas in which it has proprietary products,
limited competition and strong government support. China Health
cautions that the foregoing list of material factors is not
exhaustive. When relying on China Health's forward-looking statements
and information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties and
potential events. China Health has assumed a certain progression,
which may not be realized. It has also assumed that the material
factors referred to above will not cause such forward-looking
statements and information to differ materially from actual results or
events. However, the list of these factors is not exhaustive and is
subject to change and there can be no assurance that such assumptions
will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE
REPRESENTS THE EXPECTATIONS OF CHINA HEALTH AS OF THE DATE OF THIS
PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE.
READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING
INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER
DATE. WHILE CHINA HEALTH MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE
THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN
ACCORDANCE WITH APPLICABLE LAWS.
SOURCE: CHINA HEALTH LABS & DIAGNOSTICS
For further information:
Chief Financial Officer
China Health Labs & Diagnostics Ltd.
T: (416) 865-3351