Genesis Pharmaceuticals Enterprises, Inc., a US pharmaceutical company with its principal operations in the People's Republic of China, announced that Laiyang Jiangbo Pharmaceutical Co., Ltd. (Laiyang), a wholly-owned subsidiary of the company, entered into an Assets Transfer Contract with Shandong Chinese Traditional Medicine College and Hongrui Pharmaceuticals, Ltd. (Hongrui), a wholly-owned subsidiary of the Medicine College, pursuant to which Laiyang will purchase the majority of the assets owned by Hongrui, including all tangible assets, including without limitation, all manufacturing and office buildings, land, equipment and inventories and all rights to manufacture and distribute Hongrui's 22 Traditional Chinese Medicines (TCM), for a total purchase price of RMB110 million (approximately $16.1 million) consisting of RMB66 million in cash (approximately US$9.6 million) and 643,651 shares of the company's common stock. Because the current fair market value share price is approximately US$2.6 million; the company has valued the transaction at approximately US$12.2 million.