Norton Rose Fulbright advises China Jo-Jo Drugstores in strategic restructuring

Global law firm Norton Rose Fulbright represented the Special Committee of China Jo-Jo Drugstores, Inc. (Jo-Jo Drugstores), a leading retailer, wholesale distributor and healthcare provider in China, in its strategic restructuring to become a wholesale-focused company. The complex deal included both acquisition and divestiture transactions, which are expected to close in the first quarter of 2025.

As part of the restructuring, Jo-Jo Drugstores acquired Allright Internet Technology Co. Ltd. (Allright), a company engaged in the pharmaceutical wholesale business, through an equity exchange for the issuance of 2,225,000 ordinary shares. The companies will unite to build a robust wholesale platform.

Jo-Jo Drugstores will also divest its drug retail business to current CEO Lei Liu and director Li Qi in exchange for all company shares held by Liu, Qi and their affiliates, which totals approximately 41 percent of outstanding ordinary shares.

Norton Rose Fulbright’s core deal team was led by Yan Zhang (San Francisco) and also included Siyuan An (Los Angeles) and Siyi Zhu (New York). Kaylee Yang (San Francisco) also provided assistance.