BGM Group Acquires Wonder Dragon to Accelerate "Healthcare" Strategy | BGM Stock News

Author's Avatar
Apr 21, 2025
  • BGM Group (BGM, Financial) to acquire Wonder Dragon Global for RMB550 million in an all-stock deal.
  • Acquisition includes over 3,000 metric tons of Qingzhuan dark tea, bolstering BGM's healthcare strategy.
  • Completion expected by Q2 2025, with plans for health-focused product development.

BGM Group (BGM) has announced a strategic acquisition of Wonder Dragon Global, valued at RMB550 million through an all-stock transaction. The deal involves the issuance of 38,165,290 Class A ordinary shares at $2 per share. The acquisition is set to be finalized by the second quarter of 2025.

This acquisition brings more than 3,000 metric tons of premium Qingzhuan dark tea to BGM's portfolio, comprising 1,670 tons of raw materials and 1,350 tons of finished products. These assets are expected to enhance BGM's position in the healthcare sector by integrating Wonder Dragon's tea resources with BGM's AI technology and biotechnology platform.

BGM Group aims to leverage these tea resources to develop new health-focused products such as ginseng and goji berry Qingzhuan dark tea variants. Furthermore, the company plans to optimize production efficiency and explore medicinal applications through its AI-powered platform, positioning itself at the intersection of traditional medicine and modern biotechnology.

Mr. Xin Chen, CEO of BGM Group, stated: "The integration of Wonder Dragon's Qingzhuan dark tea with our biotechnology platform will significantly advance our medicinal tea product development and distribution, diversifying our 'medicine + tea + health' product ecosystem."

This acquisition represents a strategic move by BGM to solidify its presence in the healthcare market, utilizing AI and big data analytics to innovate within the traditional tea industry.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.