L.Y.(HK) Biotech Limited entered into an agreement to acquire China YCT International Group, Inc (OTCPK:CYIG) in a reverse merger transaction on February 24, 2011. China YCT will issue 44.3 million shares as consideration. L.Y.(HK) Biotech Limited will hold 60% stake in China YCT International Group, Inc. upon completion of the deal. LY Research Corporation, the parent of L.Y.(HK) Biotech, has advised China YCT International Group that the 44.3 million shares are to be issued to LY Holding Limited, a Hong Kong corporation that will also be wholly-owned by Yaguang Liu. China YCT agreed to issue 11.1 million shares to LY Research, upon the quotation of China YCT's common stock on the OTCBB. China YCT agreed to issue 4.4 million shares upon the receipt by China YCT of a minimum of $20 million in gross proceeds from a debt or equity financing, or a series of debt and/or equity financings, or upon the listing of its common stock on NASDAQ.

The closing of the deal is subject to customary closing conditions. No consent, approval or authorization of, any governmental authority is required for the transaction to be completed. As of October 21, 2011, L.Y.(HK) Biotech Limited entered into an amendment agreement, under the terms of the agreement, in the event China YCT International Group, Inc cannot, within one year from October 21, 2011 raise a minimum of $20 million in gross proceeds from a debt or equity financing, or a series of debt and/or equity financings list its common stock on NASDAQ or a major foreign stock exchange, then the shares issued pursuant to the purchase agreement shall be returned to CYIG and the Patent shall be returned to LY Research and the purchase agreement, as amended, shall be cancelled and of no further force or effect.

L.Y.(HK) Biotech Limited cancelled the acquisition of China YCT International Group, Inc (OTCPK:CYIG) in a reverse merger transaction on October 29, 2012.