LiLi Wu, a former Director of Polo Biology, entered into a purchase & sale letter agreement to acquire Rainbow Trend Limited from Polo Biology Global Group Corporation (TSXV:PGG) for CAD 0.76 million on June 6, 2012. For 2011, Rainbow Trend reported revenue of CAD 1.58 million and net loss CAD 1.1 million and for the first quarter ended on March 31, 2012, Rainbow Trend reported revenue of CAD 0.16 million and net loss CAD 0.16 million. A share purchase agreement was signed on June 30, 2012. The transaction is subject to regulatory authorities, TSXV Venture Exchange and approval of Polo Biology's shareholders expected to be received at a special meeting of the shareholders scheduled in August, 2012. No approvals from Chinese regulatory authorities are required for the transaction. The Board unanimously approved the offer from Mark Vantage. A special committee of independent members of the Board of Directors of Polo Biology Global was formed to review the deal. The transaction is expected to close in September, 2012. The transaction was unanimously approved by the shareholders of Polo Biology Global Group Corporation on August 16, 2012. The cash consideration was received on September 28, 2012. A gain on disposal of subsidiary of CAD 0.44 million was recognized by Polo Biology Global Group.