BGM (BGM) said Monday it has entered into a definitive agreement to acquire 100% of the equity interest in tea supplier Wonder Dragon in an all-stock transaction valued at 550 million Chinese renminbi ($75.3 million).

BGM said it plans to issue around 38.2 million class A ordinary shares at $2 per share as consideration for the acquisition.

The transaction, expected to be completed in Q2, will expand its health product portfolio and market reach, BGM said.

After closing the acquisition, BGM said it plans to accelerate the development of active ingredients for medicinal applications using its artificial intelligence-powered platform.