CIMG Inc. (NASDAQ: IMG) and its wholly‑owned subsidiary, DZR Tech Limited, have entered into a definitive share purchase agreement to acquire 100 % of the issued and outstanding equity of Daren Business Technology Limited, a high‑tech biopharmaceutical company headquartered in Hong Kong. The purchase price is $40 million, paid in escrowed shares of CIMG that will be released in four tranches over a 3½‑year period from April 2026 through September 2029. Each tranche is tied to audited revenue milestones—$29 million in 2026, $71 million in 2027, $143 million in 2028, and $257 million in 2029—so that equity dilution aligns with Daren’s growth performance.
CIMG’s move marks its first substantive entry into the regulated biopharmaceutical market, a sector it has identified as one of the fastest‑growing core industries. The company’s CEO, Alice Wang, said the acquisition “expands our digital‑health and sales‑development focus into a high‑growth, regulated market.” CIMG has previously focused on functional beverages and computing‑power initiatives, and the company’s name change from NuZee in October 2024 reflected a broader strategic pivot. The deal is intended to broaden CIMG’s product portfolio, deepen its technology capabilities, and create new revenue streams that complement its existing businesses.
Daren Business Technology Limited integrates research and development, production, marketing, and technical services for biopharmaceutical products. While specific product lines are not disclosed, the company’s Hong Kong base positions it to serve both regional and global markets. The acquisition provides CIMG with immediate access to a high‑growth segment, but the company’s financial health remains fragile. CIMG’s market capitalization is approximately $9.9 million, and the company has experienced a 95 % decline in its share price over the past year, reflecting significant cash burn and investor skepticism.
The escrowed‑share structure protects CIMG from over‑dilution if Daren fails to meet revenue targets. The phased release means that the largest tranche—52 % of the total shares—will be issued only if Daren achieves $257 million in revenue by September 2029. This design aligns CIMG’s equity interests with Daren’s performance and mitigates risk for a company that has faced substantial financial pressure. The deal also signals CIMG’s willingness to invest heavily in a new industry despite its limited cash reserves, underscoring a bold, albeit risky, strategic shift.
The announcement generated a notable uptick in trading activity, driven largely by speculation and short‑covering. Analysts noted that the market reaction was amplified by CIMG’s low base and the absence of clear fundamental catalysts beyond the acquisition announcement. The company’s CEO emphasized confidence in the biopharmaceutical opportunity, stating that the partnership would “unlock new growth avenues” and “position CIMG for long‑term value creation.”
Alice Wang added that the acquisition “marks a key step in our group’s diversification strategy” and that CIMG will continue to focus on cost discipline while investing in high‑return verticals.
Alice Wang added that the acquisition “marks a key step in our group’s diversification strategy” and that CIMG will continue to focus on cost discipline while investing in high‑return verticals.
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