China Jo-Jo Drugstores restructures to focus on pharmaceutical wholesale

It will acquire Allright (Hangzhou) Internet Technology Co., Lt.

China Jo-Jo Drugstores, Inc. has announced a major restructuring to shift from retail to a wholesale-focused model to improve efficiency and profitability.

The company will acquire Allright (Hangzhou) Internet Technology Co., Ltd., a pharmaceutical wholesaler, by issuing 2,225,000 shares, representing 38% of its total shares post-transaction.

Additionally, it will sell its retail drug business to current CEO Lei Liu and Director Li Qi, who will return 2,548,353 shares to the company.

The transactions are expected to close in the first quarter of 2025, pending shareholder approval. Liu and Qi will resign from the board, with CFO Frank Zhao stepping in as interim CEO. Lingtao Kong, the ultimate shareholder of Allright, will join the board.

“Whilst I will be shifting my focus to the retail business, an area where I have deep expertise, I believe this transformation will enhance operational efficiency and create long-term value for CJJD's shareholders,” said Liu.

“Our focus will remain on strengthening our wholesale operations, improving efficiency, and positioning CJJD for long-term success,” added Zhao.