Traditional Chinese Health Supplement Maker, Happiness Biotech, Seeks $10 Million IPO
Happiness Biotech Group Ltd., which makes traditional Chinese health supplements from herbal and animal extracts, filed for an initial public offering today seeking to raise up to $10 million in New York.
Founded 14 years ago, Happiness focuses on "research, development, manufacturing, marketing and sales" of so-called "nutraceutical" and dietary supplements, the company said. With sales in 27 provinces, the company works with 400 distributors and has 10 "experience" stores.
Based in Fujian province, Happiness said it was proposing to sell 750 ordinary shares on the Nasdaq Capital Market under the ticker symbol "HAPP." The number of shares that would be represented by American depositary shares, which are used by foreign companies to trade on the U.S. markets, was not disclosed in today's filing. The company currently has 50,000 ordinary shares outstanding, according to its filing.
The company's products include 32 types of supplements, primarily Lucidum spore powder products, Cordyceps mycelia products and Ejiao solution products – each of which are targeted to people with "physical deficiency and weak immune system," according to the company's filing today with the Securities and Exchange Commission. The company also sells dietary supplements, vitamins, and American ginseng products.
For the six months ended Sept. 30, 2018, Happiness reported revenue of $31.4 million compared with $28.9 million the year before. Net income was $8.8 million during the period compared with $8.5 million in the comparable period of 2017.
Happiness said it planned to use proceeds from the offering to expand the number of its stores from 10 to between 22 and 30. It also expected to use funds for research and development.
The underwriter, Univest Securities LLC is selling the shares on a "best efforts" basis.
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