According to the announcement from EPS Health Tech (03860) on October 2, 2024, the seller (EPS Medical Consultancy Services Limited, an indirect wholly-owned subsidiary of the company) has entered into a share transfer agreement with the buyer, EPS Holdings, Inc., to sell all issued shares of the target company (EPS Medical Consultancy (Japan) Co., Ltd.) for 1.00 Japanese yen.

The target company is a limited liability company registered in Japan. Prior to the completion, the target company was an indirect wholly-owned subsidiary of the company, mainly engaged in providing IRO (Innovative Research Organization) services.

As of the date of this announcement, the target company owes the seller shareholder loans and accrued interest up to the date of the share transfer agreement amounting to 0.176 billion Japanese yen. The share transfer agreement stipulates that the buyer must repay the shareholder loans to the seller upon completion.

For several years, the board of directors has been comprehensively reviewing and evaluating the group's current business operations in order to adjust its business strategy to adapt to the challenging business environment. After careful evaluation of the above and considering the time required for the target company to become profitable and generate business synergies with other group businesses, the board of directors believes that the divestment is an excellent opportunity to redirect its investments to other business segments within the group. Following the divestment, the group will no longer record the operational losses of the target company, and the overall financial performance of the group is expected to improve.