Cheung Laboratories Inc. says it has received $2 million of a promised $10 million cash infusion from a Chinese investor, providing the Columbia company with capital for the development of new products.
The investment by Gao Yu Wan, deputy director of the economic committee of the city of Zhongshan, in southern China, will purchase 4 million shares of Cheung's common stock. Mr. Gao has pledged to buy an additional 16 million shares for $8 million. ++ That purchase is expected to close within 60 days.
Cheung will use the funding to manufacture cosmetics in China and to develop a plumbing device. Both ventures are sidelights for the company, whose primary business is the manufacture of medical equipment. The cash infusion is also expected to qualify the company for trading on the Nasdaq system.