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      How JinMed (ZJYL) Stock Continued The Rally After-Hours?

      By Fahim Awan

      Published on

      December 19, 2023

      8:07 AM UTC

      How JinMed (ZJYL) Stock Continued The Rally After-Hours?

      Jin Medical International Ltd. (NASDAQ: ZJYL) witnessed a noteworthy surge in its stock during the after-market session on Monday, with the momentum persisting into the extended session, marking a remarkable increase of 36.45% to reach $139.00. This ascent followed an exceptional surge of 263.69% during the regular trading session, concluding at $101.87. The surge in ZJYL stock can be attributed to its recent foray into an acquisition agreement.

      Jin Medical (ZJYL), or “JinMed,” formally entered into a preliminary Memorandum of Understanding (MOU) with Jiangsu Zhongjin Kanglu Information Technology Co., Ltd. The purpose of this MOU is to explore the potential acquisition of either the entirety or a partial stake in Zhongjin Kanglu. As outlined in the MOU, Jin Medical will initiate a thorough due diligence process to assess and ascertain the feasibility and prospective value of the proposed acquisition.

      The due diligence is anticipated to conclude by December 31, 2023. Subsequently, starting from March 2024, both parties are expected to engage in detailed negotiations regarding the potential acquisition. Investors are advised to exercise caution, given the inherent uncertainties surrounding the completion of the acquisition.

      Zhongjin Kanglu specializes in the medical equipment sharing business, utilizing its manufacturing expertise and advanced big data analytics technology. The company primarily focuses on addressing the needs of individuals requiring medical care by providing round-the-clock access to shared medical equipment such as wheelchairs, emergency carts, and companion beds.

      Through its equipment rental operations, Zhongjin Kanglu manages the Small-V Sharing Project, generating a base income. Additional revenue streams are derived by guiding users to purchase related equipment and financial service products. The Small-V Sharing program has successfully expanded its reach to encompass all 30 provinces. The signing of the MOU represents a significant milestone in the collaboration and development between JinMed and Zhongjin Kanglu.

      With its expertise in shared medical equipment, particularly the innovative Small V Sharing Project and well-established channels in medical institutions, Zhongjin Kanglu is poised to create a synergistic effect that will bolster the promotion of JinMed’s products in China. ZJYL is committed to advancing the acquisition process with vigor, aiming to bring forth further innovation and growth opportunities to the industry.

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