The cross-border acquisition of wine companies fell through, and Zhongxing Mushrooms dropped its limit for two consecutive days

On October 19, the edible fungus company Zhongxing Mushroom once again fell the limit, reporting 8.

On the evening of October 15th, Zhongxing Fungi Industry issued an announcement stating that due to changes in the market's macro environment and other reasons, it has decided to terminate the acquisition of Shengjiao Winery, and reached an agreement with the transaction parties on termination related matters

It is understood that on June 20, 2021, Zhongxing Fungi Industry issued an announcement stating that in order to promote the development of dual main businesses and add new profit growth points, it plans to acquire 100% of Shengjiao Winery held by Liu Jian and Liu Liangyue in cash.

It is worth noting that on June 22, the Shenzhen Stock Exchange issued a letter of concern to Zhongxing Mushroom Industry, requesting it to explain the funding source arrangements for the acquisition of the equity of Shengjiao Wine Industry in cash, and to demonstrate whether it has sufficient payment capacity and the effect of the acquisition.

Regarding the termination of the acquisition of Shengjiao Wine by Zhongxing Fungi, Shen Meng, executive director of Shanson Capital, previously told the Beijing News reporter that such cross-border rubbing hotspots are easily questioned by regulators and are not recognized by the market.