Guanhao Biotech Co. Ltd. plans to raise 1.8 billion Chinese yuan in a private placement of its common stock, Sina Medical News reported.

Pending approval by the China Securities Regulatory Commission, the company will issue not more than 70 million shares in order to raise 1.8 billion yuan.

The funds will be used toward buying out a partially owned subsidiary.

As of March 29, US$1 was equivalent to 6.89 Chinese yuan.