<SEC-DOCUMENT>0001144204-14-075063.txt : 20141219
<SEC-HEADER>0001144204-14-075063.hdr.sgml : 20141219
<ACCEPTANCE-DATETIME>20141219164630
ACCESSION NUMBER:		0001144204-14-075063
CONFORMED SUBMISSION TYPE:	F-3
PUBLIC DOCUMENT COUNT:		6
FILED AS OF DATE:		20141219
DATE AS OF CHANGE:		20141219

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Dehaier Medical Systems Ltd
		CENTRAL INDEX KEY:			0001474627
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		F-3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-201163
		FILM NUMBER:		141300199

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 501, JIUZHOU PLAZA
		STREET 2:		83 FUXING ROAD,
		CITY:			HAIDIAN DISTRICT, BEIJING
		STATE:			F4
		ZIP:			100856
		BUSINESS PHONE:		(8610) 5166-0080

	MAIL ADDRESS:	
		STREET 1:		SUITE 501, JIUZHOU PLAZA
		STREET 2:		83 FUXING ROAD,
		CITY:			HAIDIAN DISTRICT, BEIJING
		STATE:			F4
		ZIP:			100856
</SEC-HEADER>
<DOCUMENT>
<TYPE>F-3
<SEQUENCE>1
<FILENAME>v397080_f3.htm
<DESCRIPTION>FORM F-3
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>As filed with the Securities and Exchange
Commission on December 19, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Registration No.&nbsp;333-</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Washington, DC 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<HR SIZE="1" NOSHADE ALIGN="CENTER" STYLE="width: 20%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>FORM F-3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>REGISTRATION STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNDER THE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES ACT OF 1933</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<HR SIZE="1" NOSHADE ALIGN="CENTER" STYLE="width: 20%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>DEHAIER MEDICAL SYSTEMS LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Exact name of registrant as specified
in its charter)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

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    <TD STYLE="vertical-align: top; width: 33%; text-align: center; font-size: 10pt"><font style="font-size: 10pt"><b>British Virgin Islands</b></font></td>
    <TD STYLE="vertical-align: bottom; width: 34%; text-align: center; font-size: 10pt"><font style="font-size: 10pt"><b>N/A</b></font></td>
    <TD STYLE="vertical-align: top; width: 33%; text-align: center; font-size: 10pt"><font style="font-size: 10pt"><b>Not Applicable</b></font></td></tr>
<tr>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(State or other jurisdiction</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>of incorporation or organization)</b></P></td>
    <TD STYLE="vertical-align: bottom; text-align: center; font-size: 10pt"><font style="font-size: 10pt"><b>(Translation of Registrant&rsquo;s Name into English)&nbsp;</b></font></td>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(I.R.S. Employer</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Identification No.)</b></P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Room 501, 83 Fuxing Road</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Haidian District, Beijing, 100856</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>+86 (10) 5166-0080</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(Address, including zip code, and telephone</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>number, including area code, of registrant&rsquo;s</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>principal executive offices)</b></P></td>
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CT Corporation System</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>111 Eighth Avenue</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>New York, New York 10011</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(800) 624-0909</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(Name, address including zip code, and</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>telephone number, including area code,
        of agent</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>for service)</b></P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>With a copy to:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Anthony W. Basch, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>J. Britton Williston, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Two James Center</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>1021 East Cary Street, Suite 1400</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Richmond, Virginia 23219</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fax: 804-771-5777</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Approximate date of commencement of proposed sale to the public:&nbsp;&nbsp;From
time to time after the effective date of this registration statement as determined by the registrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the only securities being registered on this Form are being
offered pursuant to dividend or interest reinvestment plans, please check the following box:&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If any of the securities being registered on this Form are
to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#120;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is filed to register additional securities for
an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.&nbsp;<FONT STYLE="font-family: Wingdings"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT><U></U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is a registration statement pursuant to General
Instruction I.C. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to
Rule 462(e) under the Securities Act, check the following box.<FONT STYLE="font-family: Wingdings"> <FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT>&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If this Form is a post-effective amendment to a registration
statement filed pursuant to General Instruction I.C. filed to register additional securities or additional classes of securities
pursuant to Rule 413(b) under the Securities Act, check the following box.<FONT STYLE="font-family: Wingdings"> <FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT>&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CALCULATION OF REGISTRATION FEE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Title&nbsp;of&nbsp;Each&nbsp;Class&nbsp;of&nbsp;Securities&nbsp;to
    <BR>
    be&nbsp;Registered<FONT STYLE="font-size: 8pt">(1)(2)</FONT></TD><TD NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amount&nbsp;to&nbsp;be <BR>
    Registered<FONT STYLE="font-size: 8pt">(1)(2)(4)</FONT></TD><TD NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Proposed&nbsp;Maximum <BR>
    Offering&nbsp;Price&nbsp;Per<BR>
    Unit(<FONT STYLE="font-size: 8pt">1)(3)</FONT></TD><TD NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Proposed&nbsp;Maximum&nbsp;Aggregate
    <BR>
    Offering&nbsp;Price<FONT STYLE="font-size: 8pt">(1)(3)(4)</FONT></TD><TD NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amount&nbsp;of&nbsp;Registration
    <BR>
    Fee<FONT STYLE="font-size: 8pt">(4)(5)(6)</FONT></TD><TD NOWRAP STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 44%; font: 10pt Times New Roman, Times, Serif">Common shares, par value $0.002731<BR></TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right"> </TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right"> </TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Share Purchase Contracts <BR>and Share Purchase Units<FONT STYLE="font-size: 8pt">(7)</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"></TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Warrants<FONT STYLE="font-size: 8pt">(8)</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Rights<FONT STYLE="font-size: 8pt">(9)</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Units<FONT STYLE="font-size: 8pt">(10)</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Total</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">45,000,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3,624.60</TD><TD STYLE="font-size: 10pt; text-align: left"></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.3in"><font style="font-size: 10pt">(1) </font></td>
    <TD><font style="font-size: 10pt">There are being registered hereunder such indeterminate number of (i) common shares, (ii) share purchase contracts and share purchase units, (iii) warrants, (iv) rights and (v) units, as shall have an aggregate initial offering price not to exceed $45,000,000 or such lesser aggregate amount permitted under General Instruction I.B.5 to Form F-3 under the Securities Act. Such indeterminate amounts may from time to time be issued at indeterminate prices, in U.S. Dollars. Any securities registered hereunder may be sold separately or as units with other securities registered hereunder. This registration statement also includes such presently indeterminate number of securities as may be issuable from time to time upon conversion or upon exercise of, or in exchange for, any such convertible or exchangeable securities registered hereunder or pursuant to the anti-dilution provisions of any such securities. </font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">(2)</font></td>
    <TD><font style="font-size: 10pt">Pursuant to Rule 416 under the Securities Act of 1933, the securities offered hereby shall be deemed to cover additional securities to be offered to prevent dilution resulting from share splits, share dividends or similar transactions.</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">(3)</font></td>
    <TD><font style="font-size: 10pt">The proposed maximum per unit and aggregate offering prices per security will be determined, from time to time, by the registrant in connection with the issuance by the registrant of the securities registered hereunder.</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">(4)</font></td>
    <TD><font style="font-size: 10pt">The amount to be registered, proposed maximum aggregate offering price per unit and proposed maximum aggregate offering price are not specified as to each class of security pursuant to General Instruction II.C of Form F-3 under the Securities Act. The proposed maximum aggregate offering price is estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933.</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">(5)</font></td>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As discussed below, pursuant to Rule 415(a)(6) under the Securities
Act, this Registration Statement carries over $14,000,000 of unsold securities that have been previously registered and for which
filing fees were previously paid. But for the carrying over of the unsold securities, the filing fee for this filing would be $5229.00
at the current rate of $116.20 per $1,000,000. The filing fee previously paid with respect to the securities being carried forward
to this Registration Statement, which amount was $1,604.40 at the then-current rate of $114.60 per $1,000,000, reduces the amount
of fees currently due to $3,624.60.</P>


</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">(6) </font></td>
    <TD><font style="font-size: 10pt">With respect to securities to be offered for sale by the Registrant in the primary offering, the registration fee is calculated in accordance with Rule 457(o) of the Securities Act of 1933.</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">(7) </font></td>
    <TD><font style="font-size: 10pt">Share purchase contracts to purchase common shares or other securities registered hereunder. Share purchase contracts may be issued separately or as share purchase units. Share purchase units may consist of a share purchase contract and warrants, other securities registered hereunder or debt obligations of third parties, including U.S. treasury securities, securing the holders&rsquo; obligations to purchase the securities under the share purchase contracts. </font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">(8) </font></td>
    <TD><font style="font-size: 10pt">Warrants may entitle the holder to purchase our common shares. Warrants may be issued independently or together with common shares,&nbsp;and the warrants may be attached to or separate from such securities. </font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">(9) </font></td>
    <TD><font style="font-size: 10pt">Rights evidencing the right to purchase common shares. </font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">(10) </font></td>
    <TD><font style="font-size: 10pt">Each unit may consist of one or more of the other securities described in this prospectus in any combination.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The registrant hereby amends this registration statement
on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in accordance with Section&nbsp;8(a) of
the Securities Act of 1933 or until this registration statement shall become effective on such date as the Commission acting pursuant
to said Section&nbsp;8(a) may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>Pursuant to Rule 415(a)(6)
under the Securities Act, the securities registered pursuant to this Registration Statement include unsold securities previously
registered for sale pursuant to the registrant&rsquo;s registration statement on Form S-3 (File No. 333-</B></FONT> <FONT STYLE="font-size: 10pt"><B>178268)
initially filed by the registrant on December 1, 2011 and declared effective December 21, 2011 (the &ldquo;Prior Registration Statement&rdquo;).
The Prior Registration Statement registered units of beneficial interest of the registrant with a maximum aggregate offering price
of $45,000,000. Approximately $14,000,000 of such securities of beneficial interest registered on the Prior Registration Statement
remain unsold. The unsold units (and associated filing fees paid) are being carried forward to this Registration Statement. Pursuant
to Rule 415(a)(6), the offering of unsold units under the Prior Registration Statement will be deemed terminated as of the date
of effectiveness of this Registration Statement.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>



<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: red">The information in this prospectus
is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities
and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting offers to
buy these securities in any state where the offer or sale is not permitted.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: red"><B>Subject to completion,
dated December 19, 2014</B></FONT> &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_001.jpg" ALT="http:||www.sec.gov|Archives|edgar|data|1474627|000114420411070664|logo.jpg" STYLE="height: 70px; width: 264px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>DEHAIER MEDICAL SYSTEMS LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>$45,000,000</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Common Shares, Share Purchase Contracts,
Share Purchase Units,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Warrants, Rights and Units</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may offer and sell, from time to time in one or more offerings
on terms we may determine at the time of offering, any combination of&nbsp;common shares, warrants, rights, share purchase contracts,
share purchase units or units having an aggregate initial offering price of up to $45,000,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will provide the specific terms of these securities in supplements
to this prospectus. The prospectus supplement may also add, update or change information in this prospectus. Before you invest,
we urge you to read carefully this prospectus and any prospectus supplement, as well as the documents incorporated by reference
or deemed to be incorporated by reference into this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These securities may be offered and sold in the same offering
or in separate offerings; to or through underwriters, dealers, and agents; or directly to purchasers. The names of any underwriters,
dealers, or agents involved in the sale of our securities, their compensation and any over-allotment options held by them will
be described in the applicable prospectus supplement. For a more complete description of the plan of distribution of these securities,
see the section entitled &ldquo;Plan of Distribution&rdquo; beginning on page 31 of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our common shares are listed on the NASDAQ Capital Market under
the symbol &ldquo;DHRM&rdquo;.&nbsp;The aggregate market value of our outstanding common shares held by non-affiliates is $14,870,703.59
based on 5,839,675 outstanding common shares, of which 4,603,933 shares are held by non-affiliates, and a per share price of $3.23
based on the closing sale price of our ordinary shares as reported by the NASDAQ Capital Market on December 18, 2014. We have
not offered any securities pursuant to General Instruction I.B.5 of Form F-3 during the prior 12 calendar month period that ends
on and includes the date of this prospectus. We will provide information in any applicable prospectus supplement regarding any
listing of securities other than our common shares on any securities exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>This prospectus may not be used to offer or sell our securities
unless accompanied by a prospectus supplement. The information contained or incorporated in this prospectus or in any prospectus
supplement is accurate only as of the date of this prospectus, or such prospectus supplement, as applicable, regardless of the
time of delivery of this prospectus or any sale of our securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investing in our securities being offered pursuant to this
prospectus involves a high degree of risk. You should carefully read and consider the risk factors beginning on page 3 of this
prospectus and in the applicable prospectus supplement before you make your investment decision.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Neither the Securities and Exchange Commission British Virgin
Islands, nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is
truthful or complete. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>The date of this prospectus is
________________, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Table of Contents</B></P>

<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="width: 91%"><font style="font-size: 10pt">Prospectus Summary</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 8%; text-align: right"><font style="font-size: 10pt">1</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Our Company</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">2</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">General Description of the Securities We May Offer</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">2</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Risk Factors</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">3</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Special Note Regarding Forward-Looking Statements</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">15</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Use of Proceeds</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">16</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Description of Share Capital</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">16</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Description of Warrants</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">18</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Description of Units</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">19</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Description of Share Purchase Contracts and Share Purchase Units</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">20</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Description of Rights</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">20</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Plan of Distribution</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">21</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Legal Matters</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">22</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Experts</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">23</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Enforceability of Civil Liabilities Under United States Federal Securities Laws and Other Matters</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">24</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Where You Can Find More Information</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">24</font></td></tr>
<tr style="vertical-align: top; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Information Incorporated by Reference</font></td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">25</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>You should rely only on the information contained or incorporated
by reference in this prospectus or any prospectus supplement. We have not authorized any person to provide you with different or
additional information. If anyone provides you with different or inconsistent information, you should not rely on it. This prospectus
is not an offer to sell securities, and it is not soliciting an offer to buy securities in any jurisdiction where the offer or
sale is not permitted. You should assume that the information appearing in this prospectus or any prospectus supplement, as well
as information we have previously filed with the SEC and incorporated by reference, is accurate as of the date on the front of
those documents only. Our business, financial condition, results of operations and prospects may have changed since those dates.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Prospectus Summary</B></P>


<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This prospectus is part of a registration statement that we
filed with the Securities and Exchange Commission (&ldquo;SEC&rdquo;) using a shelf registration process. Under this shelf registration
process, we may offer from time to time, in one or more offerings, securities having an aggregate initial offering price of up
to $45,000,000 (or its equivalent in foreign or composite currencies). This prospectus provides you with a general description
of the securities that may be offered. Each time we offer securities under this shelf registration statement, we will provide you
with a prospectus supplement that describes the specific amounts, prices and terms of the securities being offered. The prospectus
supplement also may add, update or change information contained in this prospectus. You should read carefully both this prospectus
and any prospectus supplement together with additional information described below under the caption &ldquo;Where You Can Find
More Information,&rdquo; before making an investment decision. We have incorporated exhibits into this registration statement.
You should read the exhibits carefully for provisions that may be important to you.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You should rely only on the information contained or incorporated
by reference in this prospectus or any prospectus supplement. We have not authorized any person to provide you with different or
additional information. If anyone provides you with different or inconsistent information, you should not rely on it. This prospectus
is not an offer to sell securities, and it is not soliciting an offer to buy securities in any jurisdiction where the offer or
sale is not permitted. You should assume that the information appearing in this prospectus or any prospectus supplement, as well
as information we have previously filed with the SEC and incorporated by reference, is accurate as of the date on the front of
those documents only. Our business, financial condition, results of operations and prospects may have changed since those dates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may sell securities through underwriters or dealers, through
agents, directly to purchasers or through a combination of these methods. We and our agents reserve the sole right to accept or
reject, in whole or in part, any proposed purchase of securities. The prospectus supplement, which we will provide to you each
time we offer securities, will set forth the names of any underwriters, agents or others involved in the sale of securities and
any applicable fee, commission or discount arrangements with them. See the information described below under the heading &ldquo;Plan
of Distribution.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Except as otherwise indicated by the context, references in
this prospectus to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the terms &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our company&rdquo; and &ldquo;our&rdquo; refer to (i) Dehaier Medical Systems Limited, a British Virgin Islands company, (ii) Beijing Dehaier Medical Technology Company Limited, a PRC company, and (iii) Beijing Dehaier Technology Company Limited, a PRC company. For purposes of clarity, where the context requires us to differentiate between the entities generally referred to collectively as &ldquo;our company&rdquo;, and for purposes of this prospectus only: &ldquo;Dehaier&rdquo; refers to Dehaier Medical Systems Limited, a British Virgin Islands business company with limited liability. &ldquo;BDL&rdquo; refers to Beijing Dehaier Medical Technology Company Limited, our PRC operating subsidiary, of which Dehaier owns 99% and BTL owns the remaining 1% of equity. &ldquo;BTL&rdquo; refers to Beijing Dehaier Technology Company Limited, a PRC company controlled by our chief executive officer, Mr. Ping Chen. BTL owns approximately 1% of BDL&rsquo;s equity.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">all references to &ldquo;RMB,&rdquo; &ldquo;Renminbi&rdquo; and &ldquo;&yen;&rdquo; are to the legal currency of China and all references to &ldquo;USD,&rdquo; &ldquo;U.S. dollars,&rdquo; &ldquo;dollars,&rdquo; and &ldquo;$&rdquo; are to the legal currency of the United States; and</font></td></tr>

<tr style="vertical-align: top">
    <td style="width: 24px">&nbsp;</td>
    <td style="width: 24px"><font style="font: 10pt Symbol">&middot;</font></td>
    <td><font style="font-size: 10pt">&ldquo;China&rdquo; and &ldquo;PRC&rdquo; refer to the People&rsquo;s Republic of China, and for the purpose of this prospectus only, excluding Taiwan, Hong Kong and Macau.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Company </B></P>



<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our business consists of the marketing and sale of sleep respiratory
solutions to obstructive sleep apnea syndrome (&ldquo;OSAS&rdquo;) as well as other medical devices in China. We develop and assemble
some of our branded products from components manufactured by third parties according to our specifications. We do not manufacture
these components ourselves. In addition to our branded products, we also sell a variety of products developed, manufactured and
assembled by third parties, which we refer to in this prospectus as our distributed products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We sell the majority of our branded and distributed products
to distributors, and a very small amount to other end users. Distributors, however, sell their products to the same end users,
which include hospitals, clinics and individuals. We broaden our product portfolio through distribution agreements with international
manufacturers, and most of the products we distribute are imported. Our distribution offerings are mostly medical equipment used
in the operating room, the intensive care unit (&ldquo;ICU&rdquo;) and the emergency room.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have contractual distribution relationships with over 2,000
independent distributors, keep close relationships with 3,000 hospitals and employ 70 direct sales and sales support personnel.
We distribute our medical products through more than 20 offices&nbsp;in different regions of China.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General Description of the Securities We May Offer </B></P>

<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may offer our common shares, share purchase contracts, share
purchase units,&nbsp;warrants, rights or units, with a total value of up to $45,000,000 from time to time under this prospectus
at prices and on terms to be determined by our board of directors and based on market conditions at the time of any offering. This
prospectus provides you with a general description of the securities we may offer. Each time we offer a type or series of securities
under this prospectus, we will provide a prospectus supplement that will describe the specific amounts, prices and other important
terms of the securities, including, to the extent applicable:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Designation or classification;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Aggregate offering price;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Rates and times of payment of dividends, if any;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Redemption, conversion, exercise and exchange terms, if any;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Restrictive covenants, if any;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Voting or other rights, if any;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Conversion prices, if any; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Material U.S. federal income tax considerations.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The prospectus supplement and any related free writing prospectus
that we may authorize to be provided to you may also add, update or change information contained in this prospectus or in documents
we have incorporated by reference. However, no prospectus supplement or free writing prospectus will offer a security that is not
registered and described in this prospectus at the time of the effectiveness of the registration statement of which this prospectus
is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk Factors </B></P>


<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Related to Our Business</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our business is seasonal and revenues and operating results
could fall below investor expectations during certain periods, which could cause the trading price of our common shares to decline.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our revenues and operating results have fluctuated in the past
and may continue to fluctuate significantly depending upon numerous factors. In particular, during the period from April to May,
we generally experience an increase in revenues associated with our attendance at the China International Medical Equipment Fair,
the largest exhibition of medical equipment, related products and services in Asia-Pacific region. This fair occurs in the spring
each year. In addition, we generally experience an increase in revenues in the period from September through November. This increase
is associated with hospital purchasing designed to extinguish governmental budgets prior to the fiscal year end. We believe that
our first quarter performance will generally decline as a result of the lack of business conducted during the Chinese Lunar New
Year Holiday. To the extent our financial performance fluctuates significantly, investors may lose confidence in our business and
the price of our common shares could decrease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may fail to effectively develop and commercialize new
products and services, which could materially and adversely affect our business, financial condition, results of operations and
prospects.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The respiratory market is developing rapidly and related technology
trends are constantly evolving. This results in the frequent introduction of new products and services, short product life cycles
and significant price competition. Consequently, our future success depends on our ability to anticipate technology development
trends and identify, develop and commercialize in a timely and cost-effective manner the new and advanced products that our customers
demand. New products contribute significantly to our revenues. Moreover, it may take an extended period of time for our new products
to gain market acceptance, if at all. Furthermore, as the life cycle for a product matures, the average selling price generally
decreases. In the future, we may be unable to offset the effect of declining average sales prices through increased sales volume
and controlling product costs. Lastly, during a product&rsquo;s life cycle, problems may arise regarding regulatory, intellectual
property, product liability or other issues that may affect the product&rsquo;s continued commercial viability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We sell our products primarily to distributors, and our
ability to add distributors will impact our revenue growth. Failure to maintain or expand our distribution network would materially
and adversely affect our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We depend on sales to distributors for a significant majority
of our revenues. Our distributors purchase all products ordered regardless of whether the products are ultimately sold. Products
are not purchased by distributors on consignment, and distributors have no right to return unsold products. As our existing distributor
agreements expire, we may be unable to renew such agreements on favorable terms or at all, and we do not own, employ or control
these independent distributors. Furthermore, we actively manage our distribution network and regularly review the performance of
each distributor. We may terminate agreements with distributors, without penalty, if we are not satisfied with their performance
for any reason. We periodically terminate relationships with underperforming exclusive distributors. Our distributors may also
terminate their relationship with us without penalty. When an exclusive distributor in a particular geographic area fails to meet
our expectations, then we are economically incentivized to replace that distributor with a new distributor so that area can be
served as well as possible. We occasionally terminate a relationship with a non-exclusive distributor and are more likely to simply
appoint another one; however, we have found that in some instances we are better served to replace an underperforming non-exclusive
distributor with an exclusive distributor. Additionally, we have found that even in cases where there may not be an economic incentive
to terminate a non-exclusive distributor, having the ability to replace a distributor often motivates distributors to increase
their efforts to meet our expectations. This policy may make us less attractive to some distributors. In addition, we compete for
distributors with other leading medical device companies who may enter into long-term distribution agreements, effectively preventing
many distributors from selling our products. As a result, a significant amount of time and resources must be devoted to maintaining
and growing our distribution network. Any disruption in our distribution network could have negative effects on our ability to
sell our products, which would in turn materially and adversely affect our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We sell products for some of our competitors, some of
which compete with our branded products.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We serve as a distributor for other companies&rsquo; medical
products and also sell medical products that we developed. While we rely on other suppliers&rsquo; products for some of our revenues,
our self-developed products may, from time to time, compete with these suppliers&rsquo; products. Some of our suppliers may seek
to restrict our ability sell competing products&mdash;either self-developed or developed by other third party suppliers&mdash;as
a condition of serving as a distributor for their products. Where we are permitted to sell competing products, we may find that
sales of a supplier&rsquo;s products reduce demand for our self-developed products. Where our agreements with suppliers limit our
ability to sell competing branded products, we may have to forego developing potentially profitable products. Any of these results
could materially harm our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We rely on some of our competitors to supply component
parts for our branded products.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We obtain some components from companies that are competitors
in our market, such as IMD. We are not reliant on these competitors for such components and believe we could obtain these components
from other suppliers. We do, however, provide detailed technical specifications to these competitors for use in producing components
for our branded products. If these companies were to reverse-engineer or otherwise misappropriate such information, our business
could be materially harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Although we do not own or control our distributors, the
actions of these distributors may affect our business operations or our reputation in the marketplace.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our distributors are independent from us, and as such, our ability
to effectively manage their activities is limited. Distributors could take any number of actions that could have material adverse
effects on our business. If we fail to adequately manage our distribution network or if distributors do not comply with our distribution
agreements, our corporate image could be tarnished among end users, disrupting our sales. Furthermore, we could be liable for actions
taken by our distributors, including any violations of applicable law in connection with the marketing or sale of our products,
including China&rsquo;s anti-corruption laws. Recently, the PRC government has increased its anti-bribery efforts in the healthcare
sector to reduce improper payments received by hospital administrators and doctors in connection with the purchase of pharmaceutical
products and medical devices. Our distributors may violate these laws or otherwise engage in illegal practices with respect to
their sales or marketing of our products. If our distributors violate these laws, we could be required to pay damages or fines,
which could materially and adversely affect our financial condition and results of operations. In addition, our brand and reputation,
our sales activities or the price of our shares could be adversely affected if our company becomes the target of any negative publicity
as a result of actions taken by our distributors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We plan to expand our sleep respiratory and technical
service products internationally and hope to become a leader in selected international markets. Such expansion can be difficult
and time consuming, and if unsuccessful our future profits would be materially and adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">While we currently operate primarily in China, we envision
competing in selected international markets with our <B>sleep respiratory</B> and technical service products. We intend to enter
into markets in which we have limited or no experience and in which our brand may be less recognized. We plan to devote significant
resources to marketing and promoting our brand internationally and attracting distributors in foreign markets. Success in international
markets will depend on our ability to attract a sufficient number of distributors suitable for selling our branded products. Furthermore,
in new markets we may fail to anticipate competitive conditions that are different from those in our existing markets. These competitive
conditions may make it difficult or impossible for us to operate effectively in these markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Operation in international markets will also expose us to many
other risks, including but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">political instability;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">economic instability and recessions;</font></td></tr>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">changes in tariffs;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">difficulties of administering foreign operations generally;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">limited protection for intellectual property rights;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">obligations to comply with a wide variety of foreign laws and other regulatory requirements;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">financial condition, expertise and performance of international distributors;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">export license requirements;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">unauthorized re-export of our branded products;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">inability to purchase our distributed products from international suppliers at competitive prices;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">potentially adverse tax consequences; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">inability to effectively enforce contractual or legal rights.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are highly dependent on our key personnel such as key
executives and research and development personnel.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are highly dependent on the continued service of our key
executives and other key personnel. In particular, we substantially rely on our chairman and chief executive officer Mr.&nbsp;Ping
Chen to manage our business and operations. We also rely on key research and development personnel for the development of new products.
In addition, we rely on customer service personnel for the installation and support of our products and on marketing and sales
personnel, engineers and other personnel with technical and industry knowledge to market, sell, install and service our products.
We have entered into standard one-year employment contracts with all of our officers and managers and other key personnel and one-year
employment contracts with our other employees. These contracts prohibit our employees from engaging in any conduct or activity
that would be competitive with our business during the course of their employment. Loss of any of our key personnel could severely
disrupt our business. We may not be able to find suitable or qualified replacements, and will likely incur additional expenses
in order to recruit and train any new personnel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Competition for qualified management and key personnel in the
medical technology field is intense and the pool of qualified candidates is limited. We not only compete with other medical device
companies but also universities and other research institutions to attract and retain qualified personnel. This intense competition
may force us to offer higher compensation and benefit packages in order to attract and retain the most qualified personnel. Our
future success depends on our ability to attract and retain these individuals and failure to do so could result in severe disruptions
to our business and growth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our business is subject to intense competition, which
may reduce demand for our products and materially and adversely affect our business, financial condition, results of operations
and prospects.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The medical device market is highly competitive, and we expect
competition to intensify. Given the $585 billion stimulus initiative in China and its impact on healthcare, we expect the availability
of healthcare to increase, as more hospitals and clinics are developed rurally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We face direct competition from both domestic and international
competitors across all product lines and price points. Our competitors also vary by product. Currently, in China our competitors
include publicly traded and privately held multinational companies, such as Respironics Inc., ResMed Inc., and Covidien, as well
as domestic Chinese companies such as Jiangsu Yuyue. As we expand into international markets, we expect that our competitors will
primarily be publicly traded and privately held multinational companies. We also expect to face competition in international sales
from companies that have local operations in the markets in which we sell our products. Some of our larger competitors may have:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">greater financial and other resources;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">larger variety of products;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">more products that have received regulatory approvals;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">greater pricing flexibility;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">more extensive research and development and technical capabilities;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">patent portfolios that may present an obstacle to our conduct of business;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">greater knowledge of local market conditions where we seek to increase our international sales;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">stronger brand recognition; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">larger sales and distribution networks.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As a result, we may be unable to offer products similar to,
or more desirable than, those offered by our competitors, market our products as effectively as our competitors or otherwise respond
successfully to competitive pressures. In addition, our competitors may be able to offer discounts on competing products as part
of a &ldquo;bundle&rdquo; of non-competing products, systems and services that they sell to our customers, and we may not be able
to profitably match those discounts. Our competitors may develop technologies and products that are more effective than those we
currently offer or that render our products obsolete or uncompetitive. The timing of the introduction of competing products into
the market could affect the market acceptance and market share of our products. As we expect demand for our products to increase
along with the availability of healthcare, we must continue to focus on competitive pricing and innovation by being at the forefront
of market trends and improving our product and service offerings. Our failure to compete successfully could materially and adversely
affect our business, financial condition, results of operation and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Some of our internationally-based competitors may establish
production or research and development facilities in China, while others may enter into cooperative business arrangements with
Chinese manufacturers. If we are unable to develop competitive branded products, obtain regulatory approval or clearance and supply
sufficient quantities to the market as quickly and effectively as our competitors, market acceptance of our branded products may
be limited, which could result in decreased sales. In addition, we may not be able to maintain our branded product cost advantages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that corrupt practices in the medical device industry
in China still occur. To increase sales, certain manufacturers or distributors of medical devices may pay kickbacks or provide
other benefits to hospital personnel who make procurement decisions. Our company policy prohibits these practices by our direct
sales personnel and our distribution agreements require our distributors to comply with applicable law. As a result, as competition
intensifies in the medical device industry in China, we may lose sales, customers or contracts to competitors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we fail to accurately project demand for our products,
we may encounter problems of inadequate supply or oversupply, which would materially and adversely affect our financial condition
and results of operations, as well as damage our reputation and brand.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our distributors typically order our products on a purchase
order basis. We project demand for our products based on rolling projections from our distributors, our understanding of anticipated
hospital procurement spending, and distributor inventory levels. Lack of significant order backlog and the varying sales and purchasing
cycles of our distributors and other customers, however, make it difficult for us to forecast future demand accurately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we overestimate demand, we may purchase more distributed
products or more unassembled parts or components for our branded products than we require. If we underestimate demand, our third
party suppliers may have inadequate supply of distributed products or unassembled parts or product component inventories, which
could interrupt the assembly process and delay shipments of our branded products, and could result in lost sales. In particular,
we are seeking to reduce our procurement and inventory costs by matching our inventory closely with our projected product needs
and by, from time to time, deferring our purchase of components in anticipation of supplier price reductions. As we seek to balance
reduced inventory costs and assembly flexibility, we may fail to accurately forecast demand and coordinate our procurement and
assembly to meet demand on a timely basis. Our inability to accurately predict our demand and to timely meet our demand could materially
and adversely affect our financial conditions and results of operations as well as damage our reputation and corporate brand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Failure to manage our growth could strain our management,
operational and other resources, which could materially and adversely affect our business and prospects.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our growth strategy includes building our brand, increasing
market penetration of our existing products, developing new products, increasing our targeting of the home respiratory market in
China, and increasing our exports. Pursuing these strategies has resulted in, and will continue to result in substantial demands
on management resources. In particular, the management of our growth will require, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">continued enhancement of our research and development capabilities;</font></td></tr>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">information technology system enhancement;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">stringent cost controls and sufficient liquidity;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">strengthening of financial and management controls and information technology systems; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">increased marketing, sales and support activities; and hiring and training of new personnel.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we are not able to manage our growth successfully, our business
and prospects would be materially and adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we fail to obtain or maintain applicable regulatory
clearances or approvals for our products, or if such clearances or approvals are delayed, we will be unable to commercially distribute
and market our products at all or in a timely manner, which could significantly disrupt our business and materially and adversely
affect our sales and profitability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The sale and marketing of our products are subject to regulation
in China. For a significant portion of our sales, we need to obtain and renew licenses and registrations with the CFDA. The processes
for obtaining regulatory clearances or approvals can be lengthy and expensive, and the results are unpredictable. In addition,
the relevant regulatory authorities may introduce additional requirements or procedures that have the effect of delaying or prolonging
the regulatory clearance or approval for our existing or new products. If we are unable to obtain clearances or approvals needed
to market existing or new branded products, or obtain such clearances or approvals in a timely fashion, our business would be significantly
disrupted, and our sales and profitability could be materially and adversely affected. Similarly, if the third parties from which
we buy our distributed products fail to obtain such clearance, we would be unable to sell such distributed products, and our sales
and profitability could be materially and adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We generate a significant portion of our revenues from
a small number of products, and a reduction in demand for any of these products could materially and adversely affect our financial
condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We derive a substantial percentage of our revenues from a small
number of products. We expect a small number of our key products will continue to account for a significant portion of our net
revenues for the foreseeable future. As a result, continued market acceptance and popularity of these products is critical to our
success, and a reduction in demand due to, among other factors, the introduction of competing products by our competitors, the
entry of new competitors, or end-users&rsquo; dissatisfaction with the quality of these products could materially and adversely
affect our financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we fail to protect our intellectual property rights,
it could harm our business and competitive position.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We rely on a combination of patent, copyright, trademark and
trade secret laws and non-disclosure agreements and other methods to protect our intellectual property rights. The process of seeking
patent protection can be lengthy and expensive, our patent applications may fail to result in patents being issued, and our existing
and future patents may be insufficient to provide us with meaningful protection or commercial advantage. Our patents and patent
applications may also be challenged, invalidated or circumvented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We also rely on trade secret rights to protect our business
through non-disclosure provisions in employment agreements with employees. If our employees breach their non-disclosure obligations,
we may not have adequate remedies in China, and our trade secrets may become known to our competitors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Implementation of PRC intellectual property-related laws has
historically been lacking, primarily because of ambiguities in the PRC laws and enforcement difficulties. Accordingly, intellectual
property rights and confidentiality protections in China may not be as effective as in the United States or other western countries.
Furthermore, policing unauthorized use of proprietary technology is difficult and expensive, and we may need to resort to litigation
to enforce or defend patents issued to us or to determine the enforceability, scope and validity of our proprietary rights or those
of others. Such litigation and an adverse determination in any such litigation, if any, could result in substantial costs and diversion
of resources and management attention, which could harm our business and competitive position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may be exposed to intellectual property infringement
and other claims by third parties which, if successful, could disrupt our business and have a material adverse effect on our financial
condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our success depends, in large part, on our ability to use and
develop our technology and know-how without infringing third party intellectual property rights. If we sell our branded products
internationally, and as litigation becomes more common in China, we face a higher risk of being the subject of claims for intellectual
property infringement, invalidity or indemnification relating to other parties&rsquo; proprietary rights. Our current or potential
competitors, many of which have substantial resources and have made substantial investments in competing technologies, may have
or may obtain patents that will prevent, limit or interfere with our ability to make, use or sell our branded products in either
China or other countries, including the United States and other countries in Asia. The validity and scope of claims relating to
medical device technology patents involve complex scientific, legal and factual questions and analysis and, as a result, may be
highly uncertain. In addition, the defense of intellectual property suits, including patent infringement suits, and related legal
and administrative proceedings can be both costly and time consuming and may significantly divert the efforts and resources of
our technical and management personnel. Furthermore, an adverse determination in any such litigation or proceedings to which we
may become a party could cause us to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">pay damage awards;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">seek licenses from third parties;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">pay ongoing royalties;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">redesign our branded products; or</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">be restricted by injunctions,</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">each of which could effectively prevent us from pursuing some
or all of our business and result in our customers or potential customers deferring or limiting their purchase or use of our branded
products, which could have a material adverse effect on our financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are subject to product liability exposure and have
limited insurance coverage. Any product liability claims or potential safety-related regulatory actions could damage our reputation
and materially and adversely affect our business, financial condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The medical devices we assemble and sell can expose us to potential
product liability claims if the use of these products causes or is alleged to have caused personal injuries or other adverse effects.
Any product liability claim or regulatory action could be costly and time-consuming to defend. If successful, product liability
claims may require us to pay substantial damages. We do not maintain product liability insurance to cover potential product liability
arising from the use of our branded products because product liability insurance available in China offers only limited coverage
compared to coverage offered in many other countries. As we expand our sales internationally and increase our exposure to these
risks in many countries, we may be unable to obtain sufficient product liability insurance coverage on commercially reasonable
terms, or at all. A product liability claim or potential safety-related regulatory action, with or without merit, could result
in significant negative publicity and could materially and adversely affect the marketability of our branded products and our reputation,
as well as our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Moreover, a material design, manufacturing or quality failure
or defect in our branded products, other safety issues or heightened regulatory scrutiny could each warrant a product recall by
us and result in increased product liability claims. Also, if these products are deemed by the authorities in the countries where
we sell our branded products to fail to conform to product quality and safety requirements, we could be subject to regulatory action.
In China, violation of PRC product quality and safety requirements may subject us to confiscation of related earnings, penalties,
an order to cease sales of the violating product or to cease operations pending rectification. Furthermore, if the violation is
determined to be serious, our business license to assemble or sell violating and other products could be suspended or revoked.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may undertake acquisitions, which may have a material
adverse effect on our ability to manage our business, and may end up being unsuccessful.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our growth strategy may involve the acquisition of new technologies,
businesses, products or services or the creation of strategic alliances in areas in which we do not currently operate. We do not
have any understanding, commitment or agreement in place with regard to any such acquisitions at this time. These acquisitions
could require that our management develop expertise in new areas, manage new business relationships and attract new types of customers.
Furthermore, acquisitions may require significant attention from our management, and the diversion of our management&rsquo;s attention
and resources could have a material adverse effect on our ability to manage our business. We may also experience difficulties integrating
acquisitions into our business and operations. Future acquisitions may also expose us to potential risks, including risks associated
with:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the integration of new operations, services and personnel;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">unforeseen or hidden liabilities;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the diversion of resources from our existing businesses and technologies; our inability to generate sufficient revenue to offset the costs of acquisitions; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">potential loss of, or harm to, relationships with employees or customers, any of which could significantly disrupt our ability to manage our business and materially and adversely affect our business, financial condition and results of operations.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the event we are unable to complete acquisitions, we have
reserved the right to reallocate such funds to our working capital. If this happens, we would have broad discretion over the ultimate
us of such funds, and we could use such funds in ways with which investors might disagree.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may need additional capital in the future, and we may
be unable to obtain such capital in a timely manner or on acceptable terms, or at all.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order for us to grow, remain competitive, develop new products,
and expand our distribution network, we may require additional capital in the future. Our ability to obtain additional capital
in the future is subject to a variety of uncertainties, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">our future financial condition, results of operations and cash flows;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">general market conditions for capital raising activities by medical device manufacturers and other related companies; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">economic, political and other conditions in China and elsewhere.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may be unable to obtain additional capital in a timely manner
or on acceptable terms or at all. Furthermore, the terms and amount of any additional capital raised through issuances of equity
securities may result in significant shareholder dilution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we experience a significant number of warranty claims,
our costs could substantially increase and our reputation and brand could suffer.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We typically sell our branded products with warranty terms covering
12 months after purchase. Our branded product warranty requires us to repair all mechanical malfunctions and, if necessary, replace
defective components. We accrue liability for potential warranty claims at the time of sale. If we experience an increase in warranty
claims or if our repair and replacement costs associated with warranty claims increase significantly, we may have to accrue a greater
liability for potential warranty claims. Moreover, an increase in the frequency of warranty claims could substantially increase
our costs and harm our reputation and brand. Our business, financial condition, results of operations and prospects may suffer
materially if we experience a significant increase in warranty claims on our branded products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Foreign Operational Risks</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Adverse changes in economic and political policies of
the PRC government could have a material adverse effect on the overall economic growth of China, which could adversely affect our
business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Substantially all of our business operations are conducted in
China. Accordingly, our results of operations, financial condition and prospects are subject to economic, political and legal developments
in China. China&rsquo;s economy differs from the economies of most developed countries in many respects, including with respect
to the amount of government involvement, level of development, growth rate, control of foreign exchange and allocation of resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">While the PRC economy has grown more rapidly in the past 30
years than the world economy as a whole, growth has been uneven across different regions and among various economic sectors of
China. The PRC government has implemented various measures to encourage economic development and guide the allocation of resources.
Some of these measures benefit the overall PRC economy, but may also have a negative effect on us. For example, our financial condition
and results of operations may be adversely affected by government control over capital investments or changes in tax regulations
that are applicable to us. Since early 2004, the PRC government has implemented certain measures to control the pace of economic
growth. Such measures may cause a decrease in the level of economic activity in China, which in turn could adversely affect our
results of operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may be subject to foreign exchange controls in the
PRC.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our PRC subsidiary and affiliates are subject to PRC rules and
regulations on currency conversion. In the PRC, the State Administration for Foreign Exchange (&ldquo;SAFE&rdquo;) regulates the
conversion of the RMB into foreign currencies. Currently, foreign investment enterprises (&ldquo;FIEs&rdquo;) are required to apply
to SAFE for &ldquo;Foreign Exchange Registration Certificate for FIEs.&rdquo; BDL is a FIE. With such registration certifications
(which need to be renewed annually), FIEs are allowed to open foreign currency accounts including the &ldquo;recurrent account&rdquo;
and the &ldquo;capital account.&rdquo; Currently, conversion within the scope of the &ldquo;recurrent account&rdquo; can be effected
without requiring the approval of SAFE. However, conversion of currency in the &ldquo;capital account&rdquo; (e.g. for capital
items such as direct investments, loans, securities, etc.) still requires the approval of SAFE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If the investing public&rsquo;s perception of smaller
companies from China worsens, our share price may decrease and we may have difficulty accessing U.S. capital markets.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In recent months, a number of smaller companies from China have
had the trading of their securities in the United States halted, delisted or otherwise affected for a variety of reasons. As a
result, investors may be concerned about purchasing the securities of any smaller Chinese company. To the extent the investing
community is reluctant to purchase such securities or discounts the value of the securities of companies that operate primarily
or exclusively in China, our share price may also be adversely affected, regardless of whether there are specific concerns about
our company. This could not only harm our share price but could also make it more difficult for us to conduct any future offering
of our securities at a price that is acceptable to our company or at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We do not have business interruption, litigation or natural
disaster insurance.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The insurance industry in China is still at an early state of
development. In particular PRC insurance companies offer limited business products. As a result, we do not have any business liability
or disruption insurance coverage for our operations in China. Any business interruption, litigation or natural disaster may result
in our business incurring substantial costs and the diversion of resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Chinese enterprise income tax law will affect tax
exemptions on the dividends we receive and increase the enterprise income tax rate applicable to us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a holding company incorporated under the laws of the
British Virgin Islands. We conduct substantially all of our business through our wholly owned Chinese subsidiaries and we derive
all of our income from these subsidiaries. Prior to January&nbsp;1, 2008, dividends derived by foreign legal persons from business
operations in China were not subject to the Chinese enterprise income tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March&nbsp;16, 2007, the National People&rsquo;s Congress
of the PRC passed the PRC Enterprise Income Tax Law (the &ldquo;EIT Law&rdquo;), which took effect on January&nbsp;1, 2008. Such
tax exemptions ceased with the effectiveness of the EIT Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the EIT Law, if we are deemed to be a non-resident enterprise
for Chinese tax purposes, a withholding tax at the rate of 10% would be applicable to any dividends paid by our Chinese subsidiaries
to us. However, if we are deemed to have a &ldquo;de facto management organization&rdquo; in China, we would be classified as a
resident enterprise for Chinese tax purposes and thus would be subject to an enterprise income tax rate of 25% on all of our income.
At present, the Chinese tax authority has not issued any guidance on the application of the EIT Law and its implementing rules
on non-Chinese enterprises or group enterprise controlled entities whose structures are like ours. As a result, it is unclear what
factors will be used by the Chinese tax authorities to determine whether we are a &ldquo;de facto management organization&rdquo;
in China. However, as substantially all members of our management team are located in China, we may be deemed to be a resident
enterprise and therefore subject to an enterprise income tax rate of 25% on our worldwide income, with the possible exclusion of
dividends received directly from another Chinese tax resident. As a result of such changes, our historical operating results will
not be indicative of our operating results for future periods and the value of our shares may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>BDL may also be required to allocate a portion of its
after-tax profits, as determined by its board of directors, to the general reserve, the staff welfare and bonus funds, and the
enterprise expansion reserve, which may not be distributed to equity owners.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Law of Chinese-Foreign Equity Joint Ventures,
Chinese-foreign equity joint ventures are required to allocate a portion of their after-tax profits in accordance with their Articles
of Association, to the general reserve, the staff welfare and bonus funds, and the enterprise expansion reserve. According to the
Articles of Association of BDL, the amount of each reserve is determined by BDL&rsquo;s board of directors. The general reserve
is used to offset future extraordinary losses. The subsidiaries may, upon a resolution passed by the shareholders, convert the
general reserve into capital. The employee welfare and bonus reserve is used for the collective welfare of the employees of the
subsidiaries. The enterprise expansion reserve is used for the expansion of the subsidiaries&rsquo; operations and can be converted
to capital subject to approval by the relevant authorities. These reserves represent appropriations of retained earnings determined
according to PRC law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of the date of this prospectus, the amounts of these reserves
have not yet been determined, and we have not committed to establishing such amounts at this time. Under current PRC laws, BDL
is required to set aside reserve amounts, but has not yet done so. BDL has not done so because PRC authorities grant companies
flexibility in making a determination. Chinese law requires such a determination to be made in accordance with the companies&rsquo;
organizational documents and BDL&rsquo;s organizational documents do not require the determination to be made within a particular
timeframe. Although we have not yet been required by PRC authorities to make such determinations or set aside such reserves, PRC
authorities may require BDL to rectify its noncompliance and we may be fined if we fail to do so after warning within the time
period set in the warning.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>PRC law requires allocation to the general reserve before
distribution of the after-tax profits of foreign invested companies, which could prevent us from receiving the dividends from BDL.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC law requires that the after-tax profits of foreign invested
companies be distributed after a portion of after-tax profits is allocated to the reserve; therefore if for any reason, the dividends
from BDL cannot be repatriated to us or not in time, then it may detrimentally affect our cash flow and even cause us to become
insolvent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Governmental control of currency conversion may affect
the value of your investment.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The PRC government imposes controls on the convertibility of
the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China. We receive the majority of
our revenues in Renminbi. Under our current corporate structure, our income is derived from payments from BDL. Shortages in the
availability of foreign currency may restrict the ability of BDL to remit sufficient foreign currency to pay dividends or other
payments to us, or otherwise satisfy their foreign currency denominated obligations. Under existing PRC foreign exchange regulations,
payments of current account items, including profit distributions, interest payments and expenditures from trade-related transactions,
can be made in foreign currencies without prior approval from SAFE by complying with certain procedural requirements. However,
approval from appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted
out of China to pay capital expenses such as the repayment of bank loans denominated in foreign currencies. The PRC government
may also at is discretion restrict access in the future to foreign currencies for current account transactions. If the foreign
exchange control system prevents us from obtaining sufficient foreign currency to satisfy our currency demands, we may not be able
to pay dividends in foreign currencies to our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Fluctuation of the Renminbi could materially affect our
financial condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The value of the Renminbi against the U.S. dollar and other
currencies may fluctuate and is affected by, among other things, changes in political and economic conditions. On July&nbsp;21,
2005, the PRC government changed its decade-old policy of pegging the value of the Renminbi to the U.S. dollar. Under the new policy,
the Renminbi is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. This change
in policy has resulted in an appreciation of the Renminbi against the U.S. dollar. While the international reaction to the Renminbi
revaluation has generally been positive, there remains significant international pressure on the PRC government to adopt an even
more flexible currency policy, which could result in a further and more significant appreciation of the Renminbi against the U.S.
dollar. Any significant revaluation of Renminbi may materially and adversely affect our cash flows, revenues, earnings and financial
position, and the value of, and any dividends payable on, our common shares in U.S. dollars. For example, an appreciation of Renminbi
against the U.S. dollar would make any new Renminbi denominated investments or expenditures more costly to us, to the extent that
we need to convert U.S. dollars into Renminbi for such purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"><B><I>If PRC law were to phase out
the preferential tax benefits currently being extended to certified high technology companies or if we were to fail to be certified
to receive such a benefit, we would have to pay more taxes, which could have a material and adverse effect on our financial condition
and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under PRC laws and regulations, a company may enjoy preferential
tax benefits if it is certified as a high technology enterprise. As a certified high technology enterprise, we are subject to an
enterprise income tax rate of 15% tax rate so long as we continue to be so certified. If the PRC law were to phase out preferential
tax benefits currently granted to certified high technology enterprises or if we were to fail to be certified to receive such a
benefit, we would be subject to the standard statutory tax rate, which currently is 25%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If relations between the United States and China worsen,
our share price may decrease and we may have difficulty accessing U.S. capital markets.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At various times during recent years, the United States and
China have had disagreements over political and economic issues. Controversies may arise in the future between these two countries.
Any political or trade controversies between the United States and China could adversely affect the market price of our common
shares and our ability to access U.S. capital markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The PRC legal system embodies uncertainties that could
limit the legal protections available to you and us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The PRC legal system is a civil law system based on written
statutes. Unlike common law systems, it is a system in which decided legal cases have limited precedential value. In 1979, the
PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general. The overall
effect of legislation over the past three decades has significantly increased the protections afforded to various forms of foreign
investment in China. Our PRC operating subsidiary, BDL, is a foreign-invested enterprise and is subject to laws and regulations
applicable to foreign investment in China as well as laws and regulations applicable to foreign-invested enterprises. These laws
and regulations change frequently, and their interpretation and enforcement involve uncertainties. For example, we may have to
resort to administrative and court proceedings to enforce the legal protections that we enjoy either by law or contract. However,
since PRC administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual
terms, it may be more difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection
we enjoy than in more developed legal systems. These uncertainties may also impede our ability to enforce the contracts we have
entered into. As a result, these uncertainties could materially and adversely affect our business and operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>PRC regulations relating to offshore investment activities
by PRC residents may increase the administrative burden we face and create regulatory uncertainties that could restrict our overseas
and cross-border investment activity, and a failure by our shareholders who are PRC residents to make any required applications
and filings pursuant to such regulations may prevent us from being able to distribute profits and could expose us and our PRC resident
shareholders to liability under PRC law.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In October 2005, SAFE promulgated regulations that require PRC
residents and PRC corporate entities to register with and obtain approvals from relevant PRC government authorities in connection
with their direct or indirect offshore investment activities. These regulations apply to our shareholders who are PRC residents
in connection with our prior and any future offshore acquisitions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The October 2005 SAFE regulation required registration by March&nbsp;31,
2006 of direct or indirect investments previously made by PRC residents in offshore companies prior to the implementation of the
Notice on Issues Relating to the Administration of Foreign Exchange in Fund-Raising and Reverse Investment Activities of Domestic
Residents Conducted via Offshore Special Purpose Companies on November&nbsp;1, 2005. If a PRC shareholder with a direct or indirect
stake in an offshore parent company fails to make the required SAFE registration, the PRC subsidiaries of such offshore parent
company may be prohibited from making distributions of profit to the offshore parent and from paying the offshore parent proceeds
from any reduction in capital, share transfer or liquidation in respect of the PRC subsidiaries. Furthermore, failure to comply
with the various SAFE registration requirements described above could result in liability under PRC law for foreign exchange evasion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We previously notified and urged our shareholders, and the shareholders
of the offshore entities in our corporate group, who are PRC residents to make the necessary applications and filings, as required
under this regulation. However, as these regulations are relatively new and there is uncertainty concerning their reconciliation
with other approval requirements, it is unclear how they, and any future legislation concerning offshore or cross-border transactions,
will be interpreted, amended and implemented by the relevant government authorities. While we believe that these shareholders submitted
applications with local SAFE offices, some of our shareholders may not comply with our request to make or obtain any applicable
registrations or approvals required by the regulation or other related legislation. The failure or inability of our PRC resident
shareholders to obtain any required approvals or make any required registrations may subject us to fines and legal sanctions, prevent
us from being able to make distributions or pay dividends, as a result of which our business operations and our ability to distribute
profits to you could be materially and adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Because our operations are located in China, information
about our operations are not readily available from independent third-party sources.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Because the BDL is based in China, our shareholders may have
greater difficulty in obtaining information about it on a timely basis than would shareholders of a U.S.-based company. BDL&rsquo;s
operations will continue to be conducted in China and shareholders may have difficulty in obtaining information about it from sources
other than BDL itself. Information available from newspapers, trade journals, or local, regional or national regulatory agencies
such as issuance of construction permits and contract awards for development projects will not be readily available to shareholders
and, where available, will likely be available only in Chinese. Shareholders will be dependent upon management for reports of their
progress, development, activities and expenditure of proceeds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Associated with this Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The market price for our common shares may be volatile,
which could result in substantial losses to investors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The market price for our common shares is likely to be volatile
and subject to wide fluctuations in response to factors including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">actual or anticipated fluctuations in our quarterly operating results;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">changes in the Chinese economy;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">announcements by our competitors of significant acquisitions, strategic partnerships, joint ventures or capital commitments;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">additions or departures of key personnel; or</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">potential litigation.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, the securities markets have from time to time experienced
significant price and volume fluctuations that are not related to the operating performance of particular companies. As a result,
to the extent shareholders sell our shares in negative market fluctuation, they may not receive a price per share that is based
solely upon our business performance. We cannot guarantee that shareholders will not lose some of their entire investment in our
common shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our classified board structure may prevent a change in
our control.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our board of directors is divided into three classes of directors.
Directors of each class are chosen for three-year terms upon the expiration of their current terms, and each year one class of
directors is elected by the shareholders. The staggered terms of our directors may reduce the possibility of a tender offer or
an attempt at a change in control, even though a tender offer or change in control might be in the best interest of our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>As the rights of shareholders under British Virgin Islands
law differ from those under U.S. law, you may have fewer protections as a shareholder.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our corporate affairs will be governed by our third amended
and restated memorandum and articles of association, the British Virgin Islands Business Companies Act, 2004 (the &ldquo;BVI Act&rdquo;),
and the common law of the British Virgin Islands. The rights of shareholders to take legal action against our directors, actions
by minority shareholders and the fiduciary responsibilities of our directors under British Virgin Islands law are to a large extent
governed by the common law of the British Virgin Islands and by the BVI Act. The common law of the British Virgin Islands is derived
in part from comparatively limited judicial precedent in the British Virgin Islands as well as from English common law, which has
persuasive, but not binding, authority on a court in the British Virgin Islands. The rights of our shareholders and the fiduciary
responsibilities of our directors under British Virgin Islands law are not as clearly established as they would be under statutes
or judicial precedents in some jurisdictions in the United States. In particular, the British Virgin Islands has a less developed
body of securities laws as compared to the United States, and some states (such as Delaware) have more fully developed and judicially
interpreted bodies of corporate law.As a result of all of the above, holders of our shares may have more difficulty in protecting
their interests through actions against our management, directors or major shareholders than they would as shareholders of a U.S.
company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>British Virgin Islands companies may not be able to initiate
shareholder derivative actions, thereby depriving shareholders of the ability to protect their interests.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">British Virgin Islands companies may not have standing to initiate
a shareholder derivative action in a federal court of the United States. The circumstances in which any such action may be brought,
and the procedures and defenses that may be available in respect to any such action, may result in the rights of shareholders of
a British Virgin Islands company being more limited than those of shareholders of a company organized in the United States. Accordingly,
shareholders may have fewer alternatives available to them if they believe that corporate wrongdoing has occurred. The British
Virgin Islands courts are also unlikely to recognize or enforce against us judgments of courts in the United States based on certain
liability provisions of U.S. securities law; and to impose liabilities against us, in original actions brought in the British Virgin
Islands, based on certain liability provisions of U.S. securities laws that are penal in nature. There is no statutory recognition
in the British Virgin Islands of judgments obtained in the United States, although the courts of the British Virgin Islands will
generally recognize and enforce the non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits.
This means that even if shareholders were to sue us successfully, they may not be able to recover anything to make up for the losses
suffered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The laws of the British Virgin Islands provide little
protection for minority shareholders, so minority shareholders will have little or no recourse if the shareholders are dissatisfied
with the conduct of our affairs.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the law of the British Virgin Islands, there is little
statutory law for the protection of minority shareholders other than the provisions of the BVI Act dealing with shareholder remedies.
The principal protection under statutory law is that shareholders may bring an action to enforce the constituent documents of the
corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Generally, the areas in which the courts will intervene are
the following: (1)&nbsp;an act complained of which is outside the scope of the authorized business or is illegal or not capable
of ratification by the majority; (2)&nbsp;acts that constitute fraud on the minority where the wrongdoers control the company;
(3)&nbsp;acts that infringe on the personal rights of the shareholders, such as the right to vote; and (4)&nbsp;where the company
has not complied with provisions requiring approval of a special or extraordinary majority of shareholders, which are more limited
than the rights afforded minority shareholders under the laws of many states in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Special Note Regarding Forward-Looking Statements </B></P>








<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This prospectus, each prospectus supplement and the information
incorporated by reference in this prospectus and each prospectus supplement contain certain statements that constitute &ldquo;forward-looking
statements&rdquo; within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. The words &ldquo;anticipate,&rdquo; &ldquo;expect,&rdquo; &ldquo;believe,&rdquo; &ldquo;goal,&rdquo; &ldquo;plan,&rdquo;
&ldquo;intend,&rdquo; &ldquo;estimate,&rdquo; &ldquo;may,&rdquo; &ldquo;will,&rdquo; and similar expressions and variations thereof
are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Any statements
regarding the intent, belief or current expectations of the Company and management that are subject to known and unknown risks,
uncertainties and assumptions are considered forward-looking statements. You are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Because forward-looking statements are inherently subject to
risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon forward-looking statements as
predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur
and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable
law, including the securities laws of the United States and the rules and regulations of the SEC, we do not plan to publicly update
or revise any forward-looking statements contained herein after we distribute this prospectus, whether as a result of any new information,
future events or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Capitalization and Indebtedness</B></P>

<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The table below sets forth our capitalization as of October
31, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>As of October 31, 2014</b></font></td>
    <td nowrap>&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap colspan="2" style="text-align: center"><font style="font-size: 10pt">(U.S. dollars in thousands)</font></td>
    <td nowrap>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 46%"><font style="font-size: 10pt">Short-term debt (including current maturities of</font><br>
<font style="font-size: 10pt">&nbsp;long term loans and debt)</font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 48%; text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2,444</P></td>
    <td style="width: 2%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td><font style="font-size: 10pt">Long-term loans</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">--</P>


</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><font style="font-size: 10pt">Total shareholders' equity</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">42,773</P>


</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td><font style="font-size: 10pt">Total liabilities and shareholders' equity</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">49,953</P>


</td>
    <td>&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Market for our Shares</B></P>


<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Our common shares have been listed
on the NASDAQ Capital Market since April 22, 2010 under the symbol &ldquo;DHRM.&rdquo; The table below shows, for the periods indicated,
the high and low market prices for our shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Market&nbsp;Price&nbsp;Per&nbsp;Share</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">High</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Low</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">Yearly:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 72%; font-size: 10pt; text-align: center">2010 (from April 22, 2010)</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">13.47</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">3.94</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">2011</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">7.74</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.40</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">2012</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.95</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.26</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">2013</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.85</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.80</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">Quarterly:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; font-style: italic; text-align: center">2012</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">First quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.38</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.26</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">Second quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.95</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.59</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">Third quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.99</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.47</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">Fourth quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.54</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; font-style: italic; text-align: center">2013</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">First quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.07</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.80</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">Second quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.45</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.81</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">Third quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.39</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1.82</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">Fourth quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.85</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.05</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; font-style: italic; text-align: center">2014</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">First quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">12.89</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.77</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">Second quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">8.66</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.50</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">Third quarter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">6.33</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.68</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">Monthly:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; font-style: italic; text-align: center">2014</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">June</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">7.08</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">5.28</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">July</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">5.76</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">5.02</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">August</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">6.33</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">5.07</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">September</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">6.12</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.68</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">October</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">5.15</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.21</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">November</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4.91</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3.92</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Use of Proceeds </B></P>


<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Except as otherwise provided in a prospectus supplement, we
expect to use the net proceeds from the sale of securities offered pursuant to this prospectus for general corporate purposes,
including for our research and development needs for current and future products, launch and promotion of sleep respiratory business,
expansion of international marketing efforts, and possible acquisitions of complementary assets or businesses. When a particular
series of securities is offered, the prospectus supplement relating to that offering will set forth our intended use of the net
proceeds received from the sale of those securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Share Capital </B></P>

<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We were incorporated as an international business company under
the International Business Companies Act, 1984, in the British Virgin Islands on July&nbsp;22, 2003 under the name &ldquo;De-Haier
Medical Systems Limited.&rdquo; We changed our name to &ldquo;Dehaier Medical Systems Limited&rdquo; on June&nbsp;3, 2005. As of
the date of this prospectus, we have authorized 18,307,038 common shares, of $0.002731 par value, of which 5,839,675 are issued
and outstanding. Currently exercisable warrants to purchase 257,500 common shares are outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 2011 in connection with our initial public offering, we established
a pool for share options for our employees (the &ldquo;2011 Share Incentive Plan&rdquo;). This pool contains options to purchase
up to 450,000 of our common shares. The options will vest at a rate of 20% per year for five years and have an exercise price of
the market price of our shares on the date the options are granted. As of the date of this report, we have issued all 450,000 options
pursuant to our 2011 Share Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 2013, we established our 2013 Share Incentive Plan (the &ldquo;2013
Share Incentive Plan&rdquo;). This pool allows us to issue options, common shares and other securities exercisable or convertible
into, in the aggregate, 462,000 of our common shares. As of the date of this report, we have not issued any securities under the
2013 Share Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 2014, we established our 2014 Share Incentive Plan (the &ldquo;2014
Share Incentive Plan&rdquo;). This pool allows us to issue options, common shares and other securities exercisable or convertible
into, in the aggregate, the number of our common shares not to exceed ten percent of the number of issued and outstanding shares
of the Company&rsquo;s common stock as of December 31st of the immediately preceding fiscal year. The number of issued and outstanding
shares of the Company&rsquo;s common stock as of December 31, 2013, was 4,668,000. As of the date of this report, 231,000 common
shares have been granted under the 2014 Share Incentive Plan. The remaining 235,800 shares currently available under the 2014 Share
Incentive Plan have not been granted; however, as noted above, an additional number of common shares may automatically be added
annually to the common shares authorized for issuance under the 2014 Share Incentive Plan on January 1 of each calendar year, from
January 1, 2015 through January 1, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Common Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each common share entitles the holder to one vote on all matters
submitted to a vote of our shareholders. The holders of our common shares are entitled to dividends out of funds legally available
when and as declared by our board of directors. Our board of directors does not anticipate declaring a dividend in the foreseeable
future. Should we decide in the future to pay dividends, as a holding company, our ability to do so and meet other obligations
depends upon the receipt of dividends or other payments from our operating subsidiary and other holdings and investments. In addition,
our operating subsidiary in the PRC, from time to time, may be subject to restrictions on its ability to make distributions to
us, including as a result of restrictive covenants in loan agreements, restrictions on the conversion of local currency into U.S.
dollars or other hard currency and other regulatory restrictions. In the event of our liquidation, dissolution or winding up, holders
of our common shares are entitled to receive, ratably, the net assets available to shareholders after payment of all creditors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All of our issued and outstanding common shares are duly authorized,
validly issued, fully paid and non-assessable. To the extent that additional common shares are issued, the relative interests of
existing shareholders will be diluted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Preferred Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Although we previously issued Series A convertible preferred
shares (&ldquo;Series A Shares&rdquo;) and Series B convertible preferred shares (&ldquo;Series B Shares&rdquo;, and together with
the Series A Shares, the &ldquo;Preferred Shares&rdquo;), we do not currently have any Preferred Shares authorized, issued or outstanding.
In 2003, we issued 120,000 Series A Shares. In 2007, we issued 182,635 Series B Shares. When they were issued and outstanding,
the Preferred Shares had priority over our common shares. Certain rights, preferences and privileges of the Preferred Shares are
listed below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">The holders of Preferred Shares were entitled to receive noncumulative dividends, when and if declared by the board of directors. Dividends were not mandatory and did not accrue.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Series A Shares and Series B Shares had liquidation preferences of $10.00 and $10.95074 per share, respectively.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">The holders of Preferred Shares were entitled to one vote for each common share into which the Preferred Shares could be converted.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">Preferred Shares were non-redeemable.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On October&nbsp;31, 2009, the Preferred Shares were converted
into common shares on a 1-to-1 basis. In addition, all Preferred Shares in authorized capital on October&nbsp;31, 2009, were re-designated
as common shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In February 2014, we issued to certain investors warrants to
purchase 220,410 common shares in the aggregate. All the warrants issued to the investors have the right to purchase one common
share for an exercise price of $11.86 per share with a term of forty-two months from the date of issuance (other than warrants
issued to the placement agent which expire forty-eight months from the date of issuance).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On April 21, 2010, we issued to Anderson &amp;Strudwick Incorporated
(&ldquo;A&amp;S&rdquo;) 150,000 warrants, as a portion of the placement commission for our initial public offering. On the same
day, we granted a total of 7,500 warrants to Hawk Associates Inc. (&ldquo;Hawk&rdquo;), our investor relations consultancy. All
the warrants issued to A&amp;S have the right to purchase one common share for an exercise price of $10.00 per share with a term
of 5 years from the date of grant. All the warrants granted to Hawk have the right to purchase one common share for an exercise
price of $9.60 per share with a term of 5 years from the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Warrants </B></P>


<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following description, together with the additional information
we may include in any applicable prospectus supplements, summarizes the material terms and provisions of the warrants that we may
offer under this prospectus and the related warrant agreements and warrant certificates. While the terms summarized below will
apply generally to any warrants that we may offer under this prospectus, we will describe the particular terms of any series of
warrants that we may offer in more detail in the applicable prospectus supplement. If we indicate in the prospectus supplement,
the terms of any warrants offered under that prospectus supplement may differ from the terms described below. However, no prospectus
supplement shall fundamentally change the terms that are set forth in this prospectus or offer a security that is not registered
and described in this prospectus at the time of its effectiveness. Specific warrant agreements will contain additional important
terms and provisions and will be incorporated by reference as an exhibit to the registration statement that includes this prospectus
or as an exhibit to a report filed under the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may issue warrants that entitle the holder to purchase common
shares. We may issue warrants independently or together with common shares, and the warrants may be attached to or separate from
these securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will describe in the applicable prospectus supplement the
terms of the series of warrants, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the offering price and aggregate number of warrants offered;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the currency for which the warrants may be purchased, if not United States dollars;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">if applicable, the designation and terms of the securities with which the warrants are issued and the number of warrants issued with each such security or each principal amount of such security;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">if applicable, the date on and after which the warrants and the related securities will be separately transferable;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font><font style="font-size: 10pt"> </font></td>
    <TD><font style="font-size: 10pt">the number of common shares purchasable upon the exercise of one warrant and the price at which these shares may be purchased upon such exercise; </font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the effect of any merger, consolidation, sale or other disposition of our business on the warrant agreement and the warrants;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the terms of any rights to redeem or call the warrants;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">any provisions for changes to or adjustments in the exercise price or number of securities issuable upon exercise of the warrants;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the dates on which the right to exercise the warrants will commence and expire;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the manner in which the warrant agreement and warrants may be modified;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">federal income tax consequences of holding or exercising the warrants;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the terms of the securities issuable upon exercise of the warrants; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">any other specific terms, preferences, rights or limitations of or restrictions on the warrants.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Before exercising their warrants, holders of warrants will not
have any of the rights of holders of the securities purchasable upon such exercise, including the right to receive dividends, if
any, or, payments upon our liquidation, dissolution or winding up or to exercise voting rights, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exercise of Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each warrant will entitle the holder to purchase the securities
that we specify in the applicable prospectus supplement at the exercise price that we describe in the applicable prospectus supplement.
Unless we otherwise specify in the applicable prospectus supplement, holders of the warrants may exercise the warrants at any time
up to the specified time on the expiration date that we set forth in the applicable prospectus supplement. After the close of business
on the expiration date, unexercised warrants will become void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of the warrants may exercise the warrants by delivering
the warrant certificate representing the warrants to be exercised together with specified information, and paying the required
amount to the warrant agent in immediately available funds, as provided in the applicable prospectus supplement. We will set forth
on the reverse side of the warrant certificate and in the applicable prospectus supplement the information that the holder of the
warrant will be required to deliver to the warrant agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon receipt of the required payment and the warrant certificate
properly completed and duly executed at the corporate trust office of the warrant agent or any other office indicated in the applicable
prospectus supplement, we will issue and deliver the securities purchasable upon such exercise. If fewer than all of the warrants
represented by the warrant certificate are exercised, then we will issue a new warrant certificate for the remaining amount of
warrants. If we so indicate in the applicable prospectus supplement, holders of the warrants may surrender securities as all or
part of the exercise price for warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Enforceability of Rights by Holders of Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each warrant agent will act solely as our agent under the applicable
warrant agreement and will not assume any obligation or relationship of agency or trust with any holder of any warrant. A single
bank or trust company may act as warrant agent for more than one issue of warrants. A warrant agent will have no duty or responsibility
in case of any default by us under the applicable warrant agreement or warrant, including any duty or responsibility to initiate
any proceedings at law or otherwise, or to make any demand upon us. Any holder of a warrant may, without the consent of the related
warrant agent or the holder of any other warrant, enforce by appropriate legal action its right to exercise, and receive the securities
purchasable upon exercise of, its warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrant Agreement Will Not Be Qualified Under Trust Indenture
Act</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No warrant agreement will be qualified as an indenture, and
no warrant agent will be required to qualify as a trustee, under the Trust Indenture Act. Therefore, holders of warrants issued
under a warrant agreement will not have the protection of the Trust Indenture Act with respect to their warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Modification of the Warrant Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The warrant agreements may permit us and the warrant agent,
if any, without the consent of the warrant holders, to supplement or amend the agreement in the following circumstances:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">to cure any ambiguity;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">to correct or supplement any provision which may be defective or inconsistent with any other provisions; or</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">to add new provisions regarding matters or questions that we and the warrant agent may deem necessary or desirable and which do not adversely affect the interests of the warrant holders.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Units </B></P>



<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may issue units comprised of one or more of the other securities
described in this prospectus in any combination. Each unit will be issued so that the holder of the unit is also the holder of
each security included in the unit. Thus, the holder of a unit will have the rights and obligations of a holder of each included
security. The unit agreement under which a unit is issued may provide that the securities included in the unit may not be held
or transferred separately, at any time or at any time before a specified date or occurrence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The applicable prospectus supplement may describe:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances those securities may be held or transferred separately;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">any provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">whether the units will be issued in fully registered or global form.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The applicable prospectus supplement will describe the terms
of any units. The preceding description and any description of units in the applicable prospectus supplement does not purport to
be complete and is subject to and is qualified in its entirety by reference to the unit agreement and, if applicable, collateral
arrangements and depository arrangements relating to such units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Share Purchase Contracts and Share Purchase
Units</B><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may issue share purchase contracts, including contracts obligating
holders to purchase from us, and obligating us to sell to the holders, a specified number of common shares or other securities
registered hereunder at a future date or dates, which we refer to in this prospectus as &ldquo;share purchase contracts.&rdquo;
The price per share of the securities and the number of shares of the securities may be fixed at the time the share purchase contracts
are issued or may be determined by reference to a specific formula set forth in the share purchase contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The share purchase contracts may be issued separately or as
part of units consisting of a share purchase contract and warrants, other securities registered hereunder or debt obligations of
third parties, including U.S. treasury securities, securing the holders&rsquo; obligations to purchase the securities under the
share purchase contracts, which we refer to herein as &ldquo;share purchase units.&rdquo; The share purchase contracts may require
holders to secure their obligations under the share purchase contracts in a specified manner. The share purchase contracts also
may require us to make periodic payments to the holders of the share purchase units or vice versa, and those payments may be unsecured
or refunded on some basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The share purchase contracts, and, if applicable, collateral
or depositary arrangements, relating to the share purchase contracts or share purchase units, will be filed with the SEC in connection
with the offering of share purchase contracts or share purchase units. The prospectus supplement relating to a particular issue
of share purchase contracts or share purchase units will describe the terms of those share purchase contracts or share purchase
units, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">if applicable, a discussion of material tax considerations; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">any other information we think is important about the share purchase contracts or the share purchase units.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Rights</B><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may issue rights to purchase common shares that we may offer
to our securityholders. The rights may or may not be transferable by the persons purchasing or receiving the rights. In connection
with any rights offering, we may enter into a standby underwriting or other arrangement with one or more underwriters or other
persons pursuant to which such underwriters or other persons would purchase any offered securities remaining unsubscribed for after
such rights offering. Each series of rights will be issued under a separate rights agent agreement to be entered into between us
and a bank or trust company, as rights agent, that we will name in the applicable prospectus supplement. The rights agent will
act solely as our agent in connection with the rights and will not assume any obligation or relationship of agency or trust for
or with any holders of rights certificates or beneficial owners of rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The prospectus supplement relating to any rights that we offer
will include specific terms relating to the offering, including, among other matters:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the date of determining the securityholders entitled to the rights distribution;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font><font style="font-size: 10pt"> </font></td>
    <TD><font style="font-size: 10pt">the aggregate number of rights issued and the aggregate number of common shares purchasable upon exercise of the rights; </font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the exercise price;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the conditions to completion of the rights offering;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the date on which the right to exercise the rights will commence and the date on which the rights will expire; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">applicable tax considerations.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each right would entitle the holder of the rights to purchase
for cash the principal amount of common shares at the exercise price set forth in the applicable prospectus supplement. Rights
may be exercised at any time up to the close of business on the expiration date for the rights provided in the applicable prospectus
supplement. After the close of business on the expiration date, all unexercised rights will become void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If less than all of the rights issued in any rights offering
are exercised, we may offer any unsubscribed securities directly to persons other than our security holders, to or through agents,
underwriters or dealers or through a combination of such methods, including pursuant to standby arrangements, as described in the
applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Plan of Distribution </B></P>


<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may sell the securities described in this prospectus through
underwriters or dealers, through agents, or directly to one or more purchasers or through a combination of these methods. The applicable
prospectus supplement will describe the terms of the offering of the securities, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the name or names of any underwriters, if any, and if required, any dealers or agents, and the amount of securities underwritten or purchased by each of them, if any;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the public offering price or purchase price of the securities from us and the net proceeds to us from the sale of the securities;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">any underwriting discounts and other items constituting underwriters&rsquo; compensation;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">any discounts or concessions allowed or re-allowed or paid to dealers; and</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">any securities exchange or market on which the securities may be listed.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may distribute the securities from time to time in one or
more transactions at:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">a fixed price or prices, which may be changed;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">market prices prevailing at the time of sale;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">varying prices determined at the time of sale related to such prevailing market prices; or</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">negotiated prices.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Only underwriters named in the prospectus supplement will be
underwriters of the securities offered by the prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we use underwriters in the sale, the underwriters will either
acquire the securities for their own account and may resell the securities from time to time in one or more transactions at a fixed
public offering price or at varying prices determined at the time of sale, or sell the Shares on a &ldquo;best efforts, minimum/maximum
basis&rdquo; when the underwriters agree to do their best to sell the securities to the public. We may offer the securities to
the public through underwriting syndicates represented by managing underwriters or by underwriters without a syndicate. Any public
offering price and any discounts or concessions allowed or re-allowed or paid to dealers may change from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we use a dealer in the sale of the securities being offered
pursuant to this prospectus or any prospectus supplement, the securities will be sold directly to the dealer, as principal. The
dealer may then resell the securities to the public at varying prices to be determined by the dealer at the time of resale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our common shares are listed on the NASDAQ Capital Market. Unless
otherwise specified in the related prospectus supplement, all securities we offer, other than common shares, will be new issues
of securities with no established trading market. Any underwriter may make a market in these securities, but will not be obligated
to do so and may discontinue any market making at any time without notice. We may apply to list any series of warrants or other
securities that we offer on an exchange, but we are not obligated to do so. Therefore, there may not be liquidity or a trading
market for any series of securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may sell the securities directly or through agents we designate
from time to time. We will name any agent involved in the offering and sale of securities and we will describe any commissions
we may pay the agent in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may authorize agents or underwriters to solicit offers by
institutional investors to purchase securities from us at the public offering price set forth in the prospectus supplement pursuant
to delayed delivery contracts providing for payment and delivery on a specified date in the future. We will describe the conditions
to these contracts and the commissions we must pay for solicitation of these contracts in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the sale of the securities, underwriters,
dealers or agents may receive compensation from us or from purchasers of the securities for whom they act as agents in the form
of discounts, concessions or commissions. Underwriters may sell the securities to or through dealers, and those dealers may receive
compensation in the form of discounts, concessions or commissions from the underwriters or commissions from the purchasers for
whom they may act as agents. Underwriters, dealers and agents that participate in the distribution of the securities, and any institutional
investors or others that purchase securities directly and then resell the securities, may be deemed to be underwriters, and any
discounts or commissions received by them from us and any profit on the resale of the securities by them may be deemed to be underwriting
discounts and commissions under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may provide agents and underwriters with indemnification
against particular civil liabilities, including liabilities under the Securities Act, or contribution with respect to payments
that the agents or underwriters may make with respect to such liabilities. Agents and underwriters may engage in transactions with,
or perform services for, us in the ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, we may enter into derivative transactions with
third parties (including the writing of options), or sell securities not covered by this prospectus to third parties in privately
negotiated transactions. If the applicable prospectus supplement indicates, in connection with such a transaction, the third parties
may, pursuant to this prospectus and the applicable prospectus supplement, sell securities covered by this prospectus and the applicable
prospectus supplement. If so, the third party may use securities borrowed from us or others to settle such sales and may use securities
received from us to close out any related short positions. We may also loan or pledge securities covered by this prospectus and
the applicable prospectus supplement to third parties, who may sell the loaned securities or, in an event of default in the case
of a pledge, sell the pledged securities pursuant to this prospectus and the applicable prospectus supplement. The third party
in such sale transactions will be an underwriter and will be identified in the applicable prospectus supplement or in a post-effective
amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To facilitate an offering of a series of securities, persons
participating in the offering may engage in transactions that stabilize, maintain, or otherwise affect the market price of the
securities. This may include over-allotments or short sales of the securities, which involves the sale by persons participating
in the offering of more securities than have been sold to them by us. In those circumstances, such persons would cover such over-allotments
or short positions by purchasing in the open market or by exercising the over-allotment option granted to those persons. In addition,
those persons may stabilize or maintain the price of the securities by bidding for or purchasing securities in the open market
or by imposing penalty bids, whereby selling concessions allowed to underwriters or dealers participating in any such offering
may be reclaimed if securities sold by them are repurchased in connection with stabilization transactions. The effect of these
transactions may be to stabilize or maintain the market price of the securities at a level above that which might otherwise prevail
in the open market. Such transactions, if commenced, may be discontinued at any time. We make no representation or prediction as
to the direction or magnitude of any effect that the transactions described above, if implemented, may have on the price of our
securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Legal Matters </B></P>



<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless otherwise indicated in the applicable prospectus supplement,
the validity of the securities registered and certain legal matters as to British Virgin Islands law in connection with this offering
will be passed upon for us by Kaufman &amp; Canoles, P.C., British Virgin Islands counsel to our Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additional legal matters may be passed on for us, or any underwriters,
dealers or agents, by counsel that we will name in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Experts </B></P>

<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The 2013 and 2012 consolidated financial statements of
our Company appearing in our annual report on Form 20-F for the  year ended December 31, 2013
have been audited by Friedman LLP, independent registered public accounting firm, as set forth in the reports thereon
included therein and incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Such consolidated financial statements are incorporated herein
by reference in reliance upon such reports given on the authority of such firms as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Enforceability of Civil Liabilities Under United States Federal
Securities Laws and Other Matters </B></P>

<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are incorporated under the laws of the British Virgin Islands
with limited liability. We are incorporated in the British Virgin Islands because of certain benefits associated with being a British
Virgin Islands corporation, such as political and economic stability, an effective judicial system, a favorable tax system, the
absence of exchange control or currency restrictions and the availability of professional and support services. However, the British
Virgin Islands has a less developed body of securities laws as compared to the United States and provides protections for investors
to a significantly lesser extent. In addition, British Virgin Islands companies may not have standing to sue before the federal
courts of the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Substantially all of our assets are located outside the United
States. In addition, a majority of our directors and officers are nationals and/or residents of countries other than the United
States, and all or a substantial portion of such persons&rsquo; assets are located outside the United States. As a result, it may
be difficult for investors to effect service of process within the United States upon us or such persons or to enforce against
them or against us, judgments obtained in United States courts, including judgments predicated upon the civil liability provisions
of the securities laws of the United States or any state thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have appointed CT Corporation System as our agent to receive
service of process with respect to any action brought against us in the United States District Court for the Southern District
of New York under the federal securities laws of the United States or of any State of the United States or any action brought against
us in the Supreme Court of the State of New York in the County of New York under the securities laws of the State of New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have been advised by Kaufman &amp; Canoles, our counsel as
to British Virgin Islands law, that the United States and the British Virgin Islands do not have a treaty providing for reciprocal
recognition and enforcement of judgments of courts of the United States in civil and commercial matters and that a final judgment
for the payment of money rendered by any general or state court in the United States based on civil liability, whether or not predicated
solely upon the U.S. federal securities laws, is unlikely to be enforceable in the British Virgin Islands. We have also been advised
by Kaufman &amp; Canoles that a final and conclusive judgment obtained in U.S. federal or state courts under which a sum of money
is payable as compensatory damages (i.e., not being a sum claimed by a revenue authority for taxes or other charges of a similar
nature by a governmental authority, or in respect of a fine or penalty or multiple or punitive damages) may be the subject of an
action on a debt in the court of the British Virgin Islands under the common law doctrine of obligation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Where You Can Find More Information </B></P>

<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a reporting company and file annual, quarterly and current
reports, proxy statements and other information with the SEC. This prospectus does not contain all of the information set forth
in the registration statement or the exhibits that are a part of the registration statement. You may read and copy the registration
statement and any document we file with the SEC at the public reference room maintained by the SEC at 100 F Street, N.E., Washington,
D.C. 20549. You may obtain information on the operation of the public reference room by calling the SEC at 1-800-SEC-0330. Our
filings with the SEC are also available to the public through the SEC&rsquo;s Internet site at <I>http://www.sec.gov</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Information Incorporated by Reference </B></P>

<HR SIZE="1" NOSHADE ALIGN="LEFT" STYLE="width: 100%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The SEC allows us to &ldquo;incorporate by reference&rdquo;
into this prospectus the information we file with them. The information we incorporate by reference into this prospectus is an
important part of this prospectus. Any statement in a document we have filed with the SEC prior to the date of this prospectus
and which is incorporated by reference into this prospectus will be considered to be modified or superseded to the extent a statement
contained in this prospectus or any other subsequently filed document that is incorporated by reference into this prospectus modifies
or supersedes that statement. The modified or superseded statement will not be considered to be a part of this prospectus, except
as modified or superseded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We incorporate by reference into this prospectus the information
contained in the following documents that we have filed with the SEC pursuant to the Securities Exchange Act of 1934, as amended
(the &ldquo;Exchange Act&rdquo;), which is considered to be a part of this prospectus:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">our Annual Report on Form 20-F for the year ended December 31, 2013, filed on April 1, 2014;</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font><font style="font-size: 10pt"> </font></td>
    <TD><font style="font-size: 10pt">our Current Reports on Form 6-K filed with the SEC on April 11, 2014, June 5, 2014, July 30, 2014, October 17, 2014, and November 10, 2014; and </font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font: 10pt Symbol">&middot;</font></td>
    <TD><font style="font-size: 10pt">the description of the common shares, $0.002731 par value per share, contained in the Registrant&rsquo;s registration statement on Form S-1 filed with the Commission on November 12, 2009 (File Number 333-163041) and declared effective by the Commission on March 26, 2010, and any amendment or report filed with the Commission for purposes of updating such description.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, we may incorporate by reference into this prospectus
our reports on Form 6-K filed after the date of this prospectus (and before the time that all of the securities offered by this
prospectus have been sold or de-registered) if we identify in the report that it is being incorporated by reference in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certain statements in and portions of this prospectus update
and replace information in the above listed documents incorporated by reference. Likewise, statements in or portions of a future
document incorporated by reference in this prospectus may update and replace statements in and portions of this prospectus or the
above listed documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We also incorporate by reference all additional documents that
we file with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act that are filed (i) after the filing date
of the registration statement of which this prospectus is a part and prior to effectiveness of that registration statement or (ii)
after the effective date of the registration statement of which this prospectus is a part and prior to the termination of the offering
of securities offered pursuant to this prospectus. We are not, however, incorporating, in each case, any documents or information
that we are deemed to &ldquo;furnish&rdquo; and not file in accordance with SEC rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You may obtain a copy of these filings by accessing them pursuant
to the directions described above in the section titled &ldquo;Where You Can Find More Information.&rdquo; You may also obtain
a copy of these filings, without charge, by writing or calling us at:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dehaier Medical Systems Limited</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Room 501, 83 Fuxing Road</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Haidian District, Beijing, 100856</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">People&rsquo;s Republic of China</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">+86 (10) 5166-0080</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Attention: Investor Relations</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>$45,000,000</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_001.jpg" ALT="http:||www.sec.gov|Archives|edgar|data|1474627|000114420411070664|logo.jpg" STYLE="height: 70px; width: 264px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DEHAIER MEDICAL SYSTEMS LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Common shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Share Purchase Contracts</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Share Purchase Units</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Units</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


<HR SIZE="1" NOSHADE ALIGN="CENTER" STYLE="width: 20%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<HR SIZE="1" NOSHADE ALIGN="CENTER" STYLE="width: 20%; color: black">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">_______________<B>___, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>No dealer, salesperson, or other person has been authorized
to give any information or to make any representation not contained in this prospectus, and, if given or made, such information
and representation should not be relied upon as having been authorized by us. This prospectus does not constitute an offer to sell
or a solicitation of an offer to buy any of the securities offered by this prospectus in any jurisdiction or to any person to whom
it is unlawful to make such offer or solicitation. Neither the delivery of this prospectus nor any sale made hereunder shall under
any circumstances create an implication that there has been no change in the facts set forth in this prospectus or in our affairs
since the date hereof.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;8. Indemnification of Directors and Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">British Virgin Islands law does not limit the extent to which
a company&rsquo;s articles of association may provide for indemnification of officers and directors, except to the extent any such
provision may be held by the British Virgin Islands courts to be contrary to public policy, such as to provide indemnification
against civil fraud or the consequences of committing a crime. Under the memorandum and articles of association of the Registrant,
the Registrant may indemnify its directors, officers and liquidators against all expenses, including legal fees, and against all
judgments, fines and amounts paid in settlement and reasonably incurred in connection with civil, criminal, administrative or investigative
proceedings to which they are party or are threatened to be made a party by reason of their acting as our director, officer or
liquidator. To be entitled to indemnification, these persons must have acted honestly and in good faith with a view to the best
interest of the Registrant and, in the case of criminal proceedings, they must have had no reasonable cause to believe their conduct
was unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing
provisions, the Registrant has been informed that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Securities Act and is therefore unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;9. Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A list of exhibits filed with this registration statement on
Form F-3 is set forth on the Exhibit&nbsp;Index and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;10. Undertakings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(a)</font></td>
    <TD><font style="font-size: 10pt">The undersigned registrant hereby undertakes:</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(1)</font></td>
    <TD><font style="font-size: 10pt">To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(i)</font></td>
    <TD><font style="font-size: 10pt">To include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act of 1933;</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(ii)</font></td>
    <TD><font style="font-size: 10pt">To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement; and</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(iii)</font></td>
    <TD><font style="font-size: 10pt">To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">provided, however, that paragraphs (1)(i), (1)(ii)&nbsp;and
(1)(iii)&nbsp;do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained
in reports filed with or furnished to the Commission by the registrant pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange
Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant
to Rule 424(b) that is part of the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(2)</font></td>
    <TD><font style="font-size: 10pt">That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(3)</font></td>
    <TD><font style="font-size: 10pt">To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(4)</font></td>
    <TD><font style="font-size: 10pt">That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(i)</font></td>
    <TD><font style="font-size: 10pt">Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(ii)</font></td>
    <TD><font style="font-size: 10pt">Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(5)</font></td>
    <TD><font style="font-size: 10pt">That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(i)</font></td>
    <TD><font style="font-size: 10pt">Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(ii)</font></td>
    <TD><font style="font-size: 10pt">Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(iii)</font></td>
    <TD><font style="font-size: 10pt">The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(iv)</font></td>
    <TD><font style="font-size: 10pt">Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(b)</font></td>
    <TD><font style="font-size: 10pt">The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant&rsquo;s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan&rsquo;s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<tr style="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(c)</font></td>
    <TD><font style="font-size: 10pt">Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than a payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</td>
    <TD STYLE="width: 0.25in"><font style="font-size: 10pt">(d)</font></td>
    <TD><font style="font-size: 10pt">The undersigned registrant hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a)&nbsp;of Section&nbsp;310 of the Trust Indenture Act in accordance with the rules and regulations prescribed by the Commission under Section&nbsp;305(b)(2) of the Trust Indenture Act.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Act of 1933,
as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing
on Form&nbsp;F-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, on December 19, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <td colspan="2"><font style="font-size: 10pt"><b>DEHAIER MEDICAL SYSTEMS LIMITED</b></font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</td>
    <TD STYLE="width: 3%">&nbsp;</td>
    <TD STYLE="width: 47%">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">By:</font></td>
    <TD STYLE="border-bottom: Black 1pt solid"><font style="font-size: 10pt">/s/&nbsp;&nbsp;Ping Chen</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Name:</font>&nbsp;&nbsp;</td>
    <TD><font style="font-size: 10pt">Ping Chen</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Title:</font>&nbsp;&nbsp;</td>
    <TD><font style="font-size: 10pt">Chief Executive Officer</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">(Principal Executive Officer)</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">By:</font></td>
    <TD STYLE="border-bottom: Black 1pt solid"><font style="font-size: 10pt">/s/&nbsp;&nbsp;Huili (Alisa) Li</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Name:</font>&nbsp;&nbsp;&nbsp;</td>
    <TD><font style="font-size: 10pt">Huili (Alisa) Li</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Title:</font>&nbsp;&nbsp;</td>
    <TD><font style="font-size: 10pt">Chief Financial Officer</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">(Principal Accounting and Financial Officer)</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Signature-1</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Act of 1933,
the following persons in the capacities and on the dates indicated have signed this Registration Statement on Form F-3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 29%; text-align: center"><font style="font-size: 10pt"><b>SIGNATURE</b> </font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 47%; text-align: center"><font style="font-size: 10pt"><b>TITLE</b> </font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 20%; text-align: center"><font style="font-size: 10pt"><b>DATE</b> </font></td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><font style="font-size: 10pt">/s/ Ping Chen </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">Chief Executive Officer and Director </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">December 19, 2014 </font></td></tr>
<tr style="vertical-align: top">
    <td><font style="font-size: 10pt">Ping Chen </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">(Principal Executive Officer) </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><font style="font-size: 10pt">/s/ Huili (Alisa) Li </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">Chief Financial Officer and Director</font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">December 19, 2014 </font></td></tr>
<tr style="vertical-align: top">
    <td><font style="font-size: 10pt">Huili (Alisa) Li</font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">(Principal Accounting and Financial Officer) </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 10pt">* </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">Director </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">December 19, 2014 </font></td></tr>
<tr style="vertical-align: top">
    <td><font style="font-size: 10pt">Phil Fan </font></td>
    <td>&nbsp;</td>
    <td nowrap><font style="font-size: 10pt">(Authorized Representative in the United States) </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 10pt">* </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">Director </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">December 19, 2014 </font></td></tr>
<tr style="vertical-align: top">
    <td><font style="font-size: 10pt">Genhui Chen </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 10pt">* </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">Director </font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">December 19, 2014 </font></td></tr>
<tr style="vertical-align: top">
    <td><font style="font-size: 10pt">Mingwei Zhang</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><font style="font-size: 10pt">*&nbsp; by: /s/ Ping Chen </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td><font style="font-size: 10pt">Ping Chen, Attorney in Fact </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Signature-2</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
    <TD STYLE="width: 10%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Exhibit</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Number</b></P></td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 88%; text-align: center"><font style="font-size: 10pt"><b>Description&nbsp;of&nbsp;Exhibit</b></font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">1.1*</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Form of Underwriting Agreement.</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">3(i).1</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Third Amended and Restated Articles of Association (Incorporated by reference to the registrant&rsquo;s registration statement on Form S-1, File no. 333-163041, filed on November 12, 2009, as amended)</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">3(ii).1</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Third Amended and Restated Memorandum of Association of the Registrant (Incorporated by reference to the registrant&rsquo;s registration statement on Form S-1, File no. 333-163041, filed on November 12, 2009, as amended)</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">4.1</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Specimen Share Certificate (Incorporated by reference to the registrant&rsquo;s registration statement on Form S-1, File no. 333-163041, filed on November 12, 2009, as amended)</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">4.6*</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Form&nbsp;of Common Share Warrant Agreement and Warrant Certificate</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">4.8*</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Form&nbsp;of Unit Agreement</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">5.1**</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Opinion of Kaufman &amp; Canoles, P.C., British Virgin Islands and Virginia Counsel</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">8.1*</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Opinion of British Virgin Islands Tax Counsel</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">8.2*</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Opinion of U.S. Tax Counsel</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">23.1**</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Consent of Friedman LLP</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">23.2**</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Consents of Kaufman &amp; Canoles, P.C., British Virgin Islands and U.S. Counsel (contained in Exhibit 5.1 and Exhibit 5.2)</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">23.3*</font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Consent of Kaufman &amp; Canoles, P.C., U.S. Counsel (contained in Exhibit 5.2)</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">24.1 </font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Power of Attorney (previously filed) </font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">25.1 </font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Exhibit withdrawn. </font></td></tr>
</table>





















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    <TD STYLE="width: 0.5in"><font style="font-size: 10pt">*</font></td>
    <TD><font style="font-size: 10pt">To the extent applicable, to be filed by an amendment or as an exhibit to a document filed under the Exchange Act and incorporated by reference herein.</font></td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt">**</font></td>
    <TD><font style="font-size: 10pt">Filed herewith.</font></td></tr>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Exhibit-1</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TYPE>EX-5.1
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<FILENAME>v397080_ex5-1.htm
<DESCRIPTION>EXHIBIT 5.1
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 5.1</B></P>

<P STYLE="margin: 0; text-align: right"></P>

<P STYLE="margin: 0; text-align: right">&nbsp;</P>

<P STYLE="margin: 0; text-align: left"></P>

<P STYLE="margin: 0; text-align: left">&nbsp;</P>

<P STYLE="margin: 0; text-align: left"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr>
    <TD STYLE="text-align: left; width: 33%; padding-right: 0; padding-left: 0; vertical-align: top">&nbsp;</td>
    <TD STYLE="text-align: left; width: 45%; padding-right: 0; padding-left: 0; vertical-align: top">&nbsp;</td>
    <TD STYLE="text-align: left; width: 22%; padding-right: 0; padding-left: 0; vertical-align: top">&nbsp;</td></tr>
<tr>
    <TD STYLE="text-align: left; padding-right: 0; padding-left: 0; vertical-align: top"><IMG SRC="kclogo.jpg" ALT=""><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;</font></td>
    <TD STYLE="text-align: left; padding-right: 0; padding-left: 0; vertical-align: top">&nbsp;</td>
    <TD STYLE="text-align: left; padding-right: 0; padding-left: 0; vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Kaufman
                                         &amp; Canoles, P.C.</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Two
                                         James Center, 14th Floor</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1021
                                         E. Cary St.</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Richmond,
                                         VA 23219&nbsp;</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"></P></td></tr>
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    <TD STYLE="text-align: left; padding-right: 0; padding-left: 0; vertical-align: top">&nbsp;</td>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">December 19, 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dehaier Medical Solutions Limited</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Room 501, Jiuzhou Plaza, 83 Fuxing Road</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Haidian District, Beijing 100856</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">People&rsquo;s Republic of China</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Re: Dehaier Medical Systems Limited Form F-3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Sir:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have acted as Virginia and British Virgin Islands counsel
for Dehaier Medical Systems Limited, a British Virgin Islands corporation (the &ldquo;Company&rdquo;), in connection with the preparation
and filing of the Company&rsquo;s registration statement on Form F-3, as may from time to time be amended (the &ldquo;Registration
Statement&rdquo;), as originally filed with the Securities and Exchange Commission (the &ldquo;Commission&rdquo;) on December 19,
2014. The Registration Statement includes a prospectus (the &ldquo;Prospectus&rdquo;), which provides that the Prospectus will
be supplemented in the future by one or more prospectus supplements (each, a &ldquo;Prospectus Supplement&rdquo;). The Registration
Statement, including the Prospectus as supplemented from time to time by one or more Prospectus Supplements, will provide for the
registration by the Company of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">i.</TD><TD>common shares, par value $0.002731 per share of the Company (the &ldquo;Common Shares&rdquo;);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">ii.</TD><TD>senior debt securities, in one or more series, of the Company (the &ldquo;Senior Debt Securities&rdquo;) to be issued pursuant
to an indenture between the Company and a trustee to be named in such indenture (the &ldquo;Senior Indenture&rdquo;);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">iii.</TD><TD>subordinated debt securities, in one or more series, of the Company (the &ldquo;Subordinated Debt Securities&rdquo;), to be
issued pursuant to an indenture between the Company and a trustee to be named in such indenture (the &ldquo;Subordinated Indenture&rdquo;)
(such Subordinated Debt Securities together with the Senior Debt Securities, the &ldquo;Debt Securities&rdquo;);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">iv.</TD><TD>warrants to purchase Common Shares, Debt Securities, or any combination thereof (the &ldquo;Warrants&rdquo;), to be issued
under a warrant agreement (the &ldquo;Warrant Agreement&rdquo;) to be entered into between the Company and a bank or trust company
as Warrant agent, and such warrants may be issued independently or together with Common Shares, Debt Securities, or any combination
thereof, and the Warrants may be attached to or separate from such securities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 6pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">v.</TD><TD>share purchase contracts obligating the holders to purchase from the Company a specified number of securities registered under
the Registration Statement (the &ldquo;Purchase Contracts&rdquo;) between the Company and a purchase contract agent identified
in the applicable agreement;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">Dehaier Medical Systems Limited<br>December 19, 2014<br>Page <!-- Field: Sequence; Type: Arabic; Value: 2; Name: PageNo -->2<!-- Field: /Sequence --></TD><TD STYLE="text-align: right; width: 50%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">vi.</TD><TD>share purchase units, each representing ownership of securities registered under the Registration Statement or debt obligations
of third parties, including U.S. treasury securities, securing a holder&rsquo;s obligation to purchase securities under such Purchase
Contracts (to the extent constituting securities under the Securities Act issued by the Company, the &ldquo;Purchase Units&rdquo;);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">vii.</TD><TD>rights to purchase Common Shares or Debt Securities of the Company (the &ldquo;Rights&rdquo;) issued pursuant to one or more
rights agreements between the Company and a bank or trust company, as rights agent (the &ldquo;Rights Agreements&rdquo;); and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">viii.</TD><TD>units comprised of one or more of the other securities described in the Registration Statement in any combination (the &ldquo;Units&rdquo;)
which may be issued under unit agreements (the &ldquo;Unit Agreement&rdquo;), by and between the Company and a bank or trust company
as unit agent;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">each on terms to be determined at the time of offering thereof
and a form of each of which will be filed as an exhibit to the Registration Statement at such time. The securities referred to
in the foregoing clauses (i) through (viii) are collectively referred to herein as the &ldquo;Securities.&rdquo; The Securities
are being registered for offering and sale from time to time pursuant to Rule 415 under the Securities Act. The aggregate public
offering price of the Securities being registered will be $45,000,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with this opinion, we have examined the Registration
Statement, and the Prospectus, the Company&rsquo;s Articles and Memorandum of Association, as amended to date, and the originals,
or copies certified to our satisfaction, of such records, documents, certificates, memoranda and other instruments as in our judgment
are necessary or appropriate to enable us to render the opinions expressed below (collectively, the &ldquo;Documents&rdquo;). We
are relying (without any independent investigation thereof) upon an Officer&rsquo;s Certificate from an Officer of the Company,
certifying to the truth and accuracy of the factual statements, covenants, representations and warranties set forth in the Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of this opinion, as to questions of fact material
to this opinion, we have, to the extent deemed appropriate, relied upon certain representations of certain officers of the Company.
In addition, this opinion assumes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>(x) the legal capacity of all natural persons and (y) (except to the extent expressly opined on herein and with respect to
parties other than the Company) that all documents, agreements and instruments have been duly authorized, executed and delivered
by all parties thereto, that all such parties are validly existing and in good standing under the laws of their respective jurisdictions
of organization, that all such parties had the power and legal right to execute and deliver all such documents, agreements and
instruments, and that such documents, agreements and instruments are legal, valid and binding obligations of such parties, enforceable
against such parties in accordance with their respective terms;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>that at the time of the issuance of the Securities, the Company will validly exist and be duly qualified and in good standing
under the laws of its jurisdiction of formation, will have the necessary corporate power and due authorization and the terms of
any such Securities will not violate the organizational documents of the Company, any applicable law or result in a default or
breach of any agreement binding upon Company, and comply with any requirement or restriction imposed by any court or other governmental
body having jurisdiction over it;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 6pt"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">Dehaier Medical Systems Limited<br>December 19, 2014<br>Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD><TD STYLE="text-align: right; width: 50%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 6pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD>that appropriate action will be taken prior to the offer and sale of the Common Shares, the Debt Securities, the Warrants,
the Purchase Contracts, the Purchase Units, the Rights and the Units to register and qualify such Securities under all applicable
state securities &ldquo;blue sky&rdquo; laws;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">4.</TD><TD>that in the case of any Securities issuable upon the conversion, exchange, redemption, repurchase or exercise of other Securities,
those Securities will be available for issuance upon such conversion, exchange, redemption, repurchase or exercise;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following opinions are given as to matters of Virginia and
British Virgin Islands law. Based upon the foregoing and subject to the limitations, qualifications and assumptions set forth herein,
we are of the opinion that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>With respect to any Common Shares issued under the Registration Statement, provided that (i) the Registration Statement and
any required post-effective amendment thereto have all become effective under the Securities Act and the Prospectus and any and
all Prospectus Supplement(s) required by applicable laws have been delivered and filed as required by such laws; (ii) the issuance
of the Common Shares has been duly authorized by the Company by all necessary corporate action; (iii) the issuance of such Common
Shares at such time does not violate any applicable law or result in a default under or breach of any agreement or instrument binding
upon the Company and such issuance is in conformity with the Memorandum of Association and Articles of Association of the Company,
and so as to comply with any requirement or restriction imposed by any court or governmental body having jurisdiction over the
Company; (v) the taking by the Company of all necessary corporate action to authorize and approve the issuance of any Common Shares,
then upon the receipt of full payment, issuance and delivery in accordance with the terms of the offering described in the Registration
Statement and registration in the register of members (shareholders) of the Company be validly issued, fully paid and non-assessable.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>With respect to any series of the Debt Securities issued under the Senior Indenture or the Subordinated Indenture, as applicable,
and offered under the Registration Statement, provided that (i) the Registration Statement and any required post-effective amendment
thereto have all become effective under the Securities Act and the Prospectus and any and all Prospectus Supplement(s) required
by applicable laws have been delivered and filed as required by such laws; (ii) the issuance and terms of the Debt Securities have
been duly authorized by the Company by all necessary corporate action; (iii) the Senior Indenture or the Subordinated Indenture,
as applicable, has been duly authorized, executed and delivered by the Company and a trustee by all necessary corporate action;
(iv) the terms of the Debt Securities and of their issuance and sale have been duly established in conformity with the Senior Indenture
or the Subordinated Indenture and as described in the Registration Statement, the Prospectus and the related Prospectus Supplement(s),
as applicable, so as not to violate any applicable law or result in a default under or breach of any agreement or instrument binding
upon the Company, so as to be in conformity with the Memorandum of Association and Articles of Association of the Company, and
so as to comply with any requirement or restriction imposed by any court or governmental body having jurisdiction over the Company;
(v) the qualification under the Trust Indenture Act of 1939, as amended (the &ldquo;Trust Indenture Act&rdquo;), of such Senior
or Subordinated Indenture, as then and theretofore amended or supplemented has been effected; and (vi) the Debt Securities have
been duly executed and delivered by the Company and authenticated by a trustee pursuant to the Senior Indenture or the Subordinated
Indenture, as applicable, and delivered against payment therefor, then the Debt Securities, when issued and sold in accordance
with the Senior Indenture or the Subordinated Indenture, as applicable, the Registration Statement, and a duly authorized, executed
and delivered purchase, underwriting or similar agreement, or upon exercise of any Warrants under a Warrant Agreement, will be
valid and legally binding obligations of the Company, enforceable against the Company in accordance with their terms.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD>With respect to the Warrants issued under the Warrant Agreement and offered under the Registration Statement, provided that
(i) the Registration Statement and any required post-effective amendment thereto have all become effective under the Securities
Act and the Prospectus and any and all Prospectus Supplement(s) required by applicable laws have been delivered and filed as required
by such laws; (ii) the issuance and terms of the Warrants have been duly authorized by the Company by all necessary corporate action;
(iii) the Warrant Agreement has been duly authorized, executed and delivered by the Company and the warrant agent by all necessary
corporate action; (iv) the terms of the Warrants and of their issuance and sale have been duly established in conformity with the
Warrant Agreement and as described in the Registration Statement, the Prospectus and the related Prospectus Supplement(s), so as
not to violate any applicable law or result in a default under or breach of any agreement or instrument binding upon the Company,
so as to be in conformity with the Memorandum of Association and Articles of Association of the Company, and so as to comply with
any requirement or restriction imposed by any court or governmental body having jurisdiction over the Company; (v) the taking by
the Company of all necessary corporate action to authorize and approve the issuance of any Common Shares that are receivable upon
exercise of Warrants, the issuance and terms of any series of any Debt Securities that are receivable upon exercise of Warrants,
and the execution and delivery of the applicable Senior or Subordinated Indenture and any applicable supplemental indenture, or
the applicable documentation; and (vi) the Warrants have been delivered against payment therefor, then the Warrants, when issued
and sold in accordance with the Warrant Agreement, the Registration Statement, and a duly authorized, executed and delivered purchase,
underwriting or similar agreement, will be valid and legally binding obligations of the Company, enforceable against the Company
in accordance with their terms.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">4.</TD><TD>With respect to the Purchase Contracts and Purchase Units, provided that (i) the Registration Statement and any required post-effective
amendment thereto have all become effective under the Securities Act and the Prospectus and any and all Prospectus Supplement(s)
required by applicable laws have been delivered and filed as required by such laws; (ii) issuance and terms of the Purchase Contracts
or Purchase Units have been duly authorized by the Company by all necessary corporate action; (iii) the applicable purchase contract
agreement and any related pledge agreement have been duly authorized, executed and delivered by the parties thereto; (iv) the terms
of the Purchase Contracts and Purchase Units and of their issuance and sale have been duly established in conformity with the applicable
purchase contract agreement and any related pledge agreement and as described in the Registration Statement, the Prospectus and
the related Prospectus Supplement(s) and do not violate any applicable law or the Memorandum of Association and Articles of Association
of the Company or result in a default under or breach of any agreement or instrument binding upon the Company and comply with any
requirement or restriction imposed by any court or governmental body having jurisdiction over the Company; (v) the Purchase Contracts
and Purchase Units have been issued and sold as contemplated by the Registration Statement; and (vi) payment of the consideration
therefor has been provided, the Purchase Contracts and Purchase Units will constitute valid and legally binding obligations of
the Company enforceable against the Company in accordance with their terms.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">Dehaier Medical Systems Limited<br>December 19, 2014<br>Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD><TD STYLE="text-align: right; width: 50%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">5.</TD><TD>With respect to the Rights, provided that (i) the Registration Statement and any required post-effective amendment thereto
have all become effective under the Securities Act and the Prospectus and any and all Prospectus Supplement(s) required by applicable
laws have been delivered and filed as required by such laws; (ii) issuance and terms of the Rights have been duly authorized by
the Company by all necessary corporate action; (iii) the applicable Rights Agreements relating to the Rights have been duly authorized,
executed and delivered; (iv) the terms of the Rights and of their issuance and sale have been duly established in conformity with
the applicable Rights Agreement and as described in the Registration Statement, the Prospectus and the related Prospectus Supplement(s)
and do not violate any applicable law or the Memorandum of Association and Articles of Association of the Company or result in
a default under or breach of any agreement or instrument binding upon the Company and comply with any requirement or restriction
imposed by any court or governmental body having jurisdiction over the Company; (v) the Rights have been duly executed and countersigned
in accordance with the applicable Rights Agreement and issued and sold as contemplated by the Registration Statement; and (vi)
payment of the consideration therefor has been provided, the Rights will constitute valid and legally binding obligations of the
Company enforceable against the Company in accordance with their terms.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">6.</TD><TD>With respect to the Units, provided that (i) the Registration Statement and any required post-effective amendment thereto have
all become effective under the Securities Act and the Prospectus and any and all Prospectus Supplement(s) required by applicable
laws have been delivered and filed as required by such laws; (ii) issuance and terms of the Units have been duly authorized by
the Company by all necessary corporate action; (iii) the applicable Unit Agreements relating to the Units have been duly authorized,
executed and delivered; (iv) the terms of the Units and any underlying securities and their issuance and sale have been duly established
in conformity with the applicable Unit Agreement and as described in the Registration Statement, the Prospectus and the related
Prospectus Supplement(s) and do not violate any applicable law or the Memorandum of Association and Articles of Association of
the Company or result in a default under or breach of any agreement or instrument binding upon the Company and comply with any
requirement or restriction imposed by any court or governmental body having jurisdiction over the Company; (v) the Units have been
duly executed, issued, sold and delivered in accordance with the applicable Unit Agreement and as contemplated by the Registration
Statement, and, if applicable, a duly authorized, executed and delivered purchase, underwriting or similar agreement; and (vi)
issuance and delivery of the applicable Units in each case upon payment of the consideration therefor provided for in the applicable
definitive purchase, underwriting or similar agreement approved by the Company and otherwise in accordance with the Registration
Statement and the provisions of the applicable underlying agreements, such Units will constitute valid and legally binding obligations
of the Company enforceable against the Company in accordance with their terms.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font-size: 10pt"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">Dehaier Medical Systems Limited<br>December 19, 2014<br>Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD><TD STYLE="text-align: right; width: 50%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our opinions in paragraphs 1, 2, 3, 4, 5 and 6 above are subject
to applicable bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent transfer or conveyance), reorganization,
moratorium and other similar laws affecting creditors&rsquo; rights generally and to general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law), including, without limitation, (a) the possible unavailability
of specific performance, injunctive relief or any other equitable remedy and (b) concepts of materiality, reasonableness, good
faith and fair dealing, and we express no opinion herein with respect to provisions relating to severability or separability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">It is understood that this opinion is to be used only in connection
with the offer and sale of the Common Shares, Debt Securities, Warrants, Purchase Contracts, Purchase Units, Rights and Units while
the Registration Statement is in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We hereby consent to the use of this opinion as an exhibit to
the Registration Statement and to the use of our name under the caption &ldquo;Legal Matters&rdquo; in the Prospectus constituting
a part thereof. In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required
under section 7 of the U.S. Securities Act of 1933, as amended, or the Rules and Regulations of the Commission thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5in; text-align: justify; text-indent: 0">Very truly
yours,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5in; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5in; text-align: justify; text-indent: 0">/s/ KAUFMAN
&amp; CANOLES, P.C.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5in; text-align: justify; text-indent: 0">KAUFMAN &amp;
CANOLES, P.C.</P>

<P STYLE="margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="margin: 0; text-align: left"></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>v397080_ex23-1.htm
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 23.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><IMG SRC="image_001.gif" ALT="" STYLE="height: 153px; width: 431px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We consent to the incorporation by reference
in the Registration Statement Form F-3 (File No. 001-34661) of Dehaier Medical Systems Limited and Affiliate of our report dated
March 31, 2014 with respect to the 2013 and 2012 consolidated financial statements of Dehaier Medical Systems Limited and Affiliate
included in the Annual Report (Form 20-F) for the year ended December 31, 2013, and to the reference to our firm under the heading
&ldquo;Experts&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">/s/ Friedman LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">New York, New York</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">December 19, 2014</P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
