Union Bridge Holdings Signs Letter of Intent with Shenyang Shenhe Yixi Home Care Service Center to develop and operate elderly care facilities in…

Health & Medicine Week

Union Bridge Holdings Signs Letter of Intent with Shenyang Shenhe Yixi Home Care Service Center to develop and operate elderly care facilities in Shenyang, Liaoning Province, China

By a News Reporter-Staff News Editor at Health & Medicine Week -- Union Bridge Holdings Limited (the "Company"; OTCQB: UGHL) announced that its subsidiary, Phoenix Creation Global Limited ("Phoenix"), has entered into a Letter of Intent with Shenyang Shenhe Yixi Home Care Service Center ("Shenyang Yixi") to enter into a joint venture (the "JV") to promote the development of the elderly care business in China, in which Phoenix would own 65% and Shenyang Yixi would own 35% (see also Union Bridge Holdings Limited).

Shenyang Yixi operates 12 community elderly day-care centers (elderly day-care centers or activity centers) and a district home-care service center (a home-based elderly care center to provide service to the elderly at home) in, which are owned by the government.

Shenyang Yixi has rented a building in Shenyang since 2016 to be renovated to operate as a nursing (elderly) care facility. The construction has been partially completed and partially paid for and is expected to be completed in first quarter of 2019. Shenyang Yixi would contribute this project to the new JV, which would complete the remaining construction work and operate the facility.

The parties estimate that the total remaining construction cost and rental expenses to be paid for the nursing care facility will be approximately RMB 31 million, and annual operation costs will be approximately RMB 8 million.

Shenyang Yixi would be responsible for the operation of the JV's nursing care facility. Phoenix would be responsible for providing or arranging the funding for the construction and rental costs.

Shenyang Yixi also agreed to contribute the business of the 12 community elderly day-care centers and the district home-care service center that it operates to the JV. Shenyang Yixi also expects that the JV may be granted by the government the right to operate at least 15 additional elderly day-care centers in Shenyang by the end of 2018.

The parties intend to conduct due diligence over a 60-day period and will endeavor to enter into a definitive agreement for the JV within 30 days after that.

Joseph Ho, Chief Executive Officer of the Company, said, "The investment in elderly care center in Shenyang is our first substantial investment and critical milestone in China market."

Keywords for this news article include: Asia, China, Business, Nursing Care, Patient Care, Health and Medicine, Union Bridge Holdings Limited.