Between cultivation sessions, Lin Yan thought about raising funds.
"I have to raise more funds within a month."
Lin Yan rose and walked to his desk, spread out some paper, and began sorting through the resources at his disposal.
He could not touch the Hundred Herbs Shop's working capital. It was what kept the business afloat. If he took all of it away, the shop would no longer be able to maintain its daily operations. That money had to stay untouched.
Lin Yan's gaze finally settled on the thick stack of notebooks at one corner of his desk. They recorded the medicinal formulas he had continually tested, improved, and even created over the past two years and more, combining his hazy pharmaceutical knowledge from his previous life, the properties of this world's medicinal ingredients, and the Supreme Purity Breathing Technique's advantage in sensing medicinal properties. In particular, several formulas had already been tested on the market, proved notably effective, and brought the Hundred Herbs Shop a steady reputation and profits: wound medicine more effective than the common products on the market, for instance, and the Hundred Herbs Essence-Nourishing Powder, which could alleviate fatigue and nourish the meridians to a certain extent.
A bold idea gradually took shape in his mind: selling the formulas.
Selling finished medicines directly yielded thin profits and consumed time and effort. Selling proven formulas, however, could bring in an enormous sum all at once, especially if he could find a powerful buyer. Spirit Hall was undoubtedly an ideal choice.
Spirit Hall's influence spanned the continent, and its resources were vast. If they could reach a partnership, he would not only resolve his funding problem in a short time, but might also use Spirit Hall's channels to spread the Hundred Herbs Shop's name farther afield.
Of course, this was no different from bargaining with a tiger for its hide. Spirit Hall was no charity. Setting a price and choosing a form of cooperation that would safeguard his interests as much as possible without arousing excessive covetousness in the other party would require exceptional negotiating skills and a precise grasp of the limits.
"Exclusive licensing, but retaining some rights and seeking a long-term share..." Lin Yan mused, writing several key points on the paper. He knew full well that although an outright buyout would be straightforward, in the long run, it would undoubtedly be killing the hen to get its eggs. If he could retain a certain percentage of the proceeds, it would tie the Hundred Herbs Shop's future development to a portion of Spirit Hall's interests, securing immediate funds while also allowing him to share in potentially enormous returns. Thirty percent of the proceeds was the initial bottom line he set for himself.
Over the next few days, Lin Yan suspended his in-depth investigations into the dead wood and spores, devoting all his attention to preparing for negotiations with Spirit Hall. He carefully selected the three most valuable formulas, which were also the most suitable for large-scale production and distribution: a highly effective wound medicine, Hundred Herbs Essence-Nourishing Powder, and a Miasma-Clearing Powder capable of repelling low-level venomous insects and dispelling miasma. He reorganized the formulas' ingredient combinations, preparation procedures, and precautions, attaching small batches of samples to ensure their effects were beyond reproach.
At the same time, he carefully assessed the potential value of these formulas under Spirit Hall's management. Spirit Hall had enormous ranks of Soul Masters and lower-level deacons, with a tremendous demand for wound medicines and supplies. Even if distribution were limited to Fasinuo Province or a still smaller area, the profits would be considerable. Based on this, Lin Yan prepared a detailed report of projected returns, striving to make his information solid and convincing.
Once his preparations were complete, Lin Yan visited Nuoding City's Spirit Hall again.
Grandmaster Ma Xiunuo was somewhat surprised by Lin Yan's return visit, but when Lin Yan explained his purpose and presented the three formulas and their samples, the old deacon's eyes immediately sharpened. He examined the samples carefully, then leafed through the materials Lin Yan had prepared. Only after a long while did he slowly set them down. His usual genial smile returned, but there was an added trace of gravity in his eyes.
"Shopkeeper Lin, you've given this old man quite a surprise this time." Ma Xiunuo tapped his fingers lightly on the table. "These formulas, especially the wound medicine and Essence-Nourishing Powder, are indeed remarkably effective. If they can be mass-produced, their value will be immeasurable. But what sort of cooperation do you have in mind?"
Already prepared, Lin Yan replied with neither servility nor arrogance, "You have a discerning eye, Grandmaster. I am willing to grant Spirit Hall the production methods and sales rights for these three formulas. However, I hope Spirit Hall can pay a licensing fee, and that the Hundred Herbs Shop will permanently receive thirty percent of all future net proceeds generated from these three formulas."
"Thirty percent?" Ma Xiunuo raised his brows slightly, a keen gleam flashing through his eyes. "Shopkeeper Lin, that is no small asking price. Spirit Hall will also be investing heavily in distribution channels, manpower, and material resources. Besides, exclusive licensing... wouldn't that mean your own Hundred Herbs Shop could no longer use them?"
"You're quite right, Grandmaster." Lin Yan nodded. "It is precisely Spirit Hall's formidable strength that will allow these formulas' value to be maximized. Thirty percent of the proceeds is based on the core value of the formulas themselves and a reasonable estimate of the future market. I believe Spirit Hall's capabilities will certainly allow them to yield the greatest returns."
Ma Xiunuo pondered for a moment without replying immediately. He understood the reason in Lin Yan's words. These three formulas were indeed excellent, and while a thirty-percent share was a high demand, it was not entirely beyond negotiation. The crucial point was that this matter was too important for a deacon of Nuoding City's branch hall to decide alone.
"Shopkeeper Lin, your proposal is very attractive," Ma Xiunuo finally said. "However, this matter has far-reaching implications, involving subsequent production, promotion, and even the distribution of profits. It must be reported to the provincial main hall for a decision. I will submit your formulas, samples, and cooperation proposal immediately. Please give me a few days. How does that sound?"
"Of course. Then I shall await your good news, Grandmaster." Lin Yan rose and bowed, knowing that he had successfully taken the first step. Whether things would turn out as he hoped depended on how Spirit Hall's higher-ups assessed the value of these formulas.
The days of waiting did not make Lin Yan anxious. He continued cultivating, nurturing the dead wood spores, and managing his shop according to his usual routine. In private, however, he began watching for information on possible alternatives for improving his physique in preparation for the auction, while also drawing up a contingency plan to raise funds elsewhere if the cooperation with Spirit Hall fell through.
Seven days later, Grandmaster Ma Xiunuo came to the Hundred Herbs Shop in person. This time, he was accompanied by a middle-aged man with a composed bearing and eyes as bright as torches. Upon introduction, he proved to be Zhou Ming, an assistant to a bishop responsible for commercial affairs at the Spirit Hall Main Hall in Fasinuo Province.
Both parties took their seats in the reception room in the rear courtyard. The atmosphere was much more serious than before.
Zhou Ming went straight to the point, evidently having assessed Lin Yan's proposal in detail. "Shopkeeper Lin, the main hall acknowledges the value of your formulas. The wound medicine in particular is of great significance to deacons working in the field and teams of low-level Soul Masters. The main hall agrees to cooperate in principle, but there are some adjustments to the specific terms."
Lin Yan remained calm. "Please go ahead, Assistant Zhou."
"First, regarding the one-time payment, we are willing to pay one hundred thousand Gold Soul Coins in advance as the licensing fee." Zhou Ming paused to observe Lin Yan's expression. Seeing no change, he continued, "Second, regarding the share of proceeds, the main hall considers your request for thirty percent rather high. Considering that Spirit Hall will bear all the costs and risks of production, sales, and promotion, the most we can accept is a twenty-percent share of net proceeds."
Lin Yan's heart stirred. A buyout fee of one hundred thousand Gold Soul Coins already far exceeded his expectations and would be enough to resolve his funding problem for the auction. But a twenty-percent share was ten percentage points below his bottom line. He was just about to argue for more when Zhou Ming changed tack.
"However, to demonstrate our sincerity and with the long term in mind, the main hall has an additional proposal," Zhou Ming said slowly. "Spirit Hall plans to open a series of shops throughout Fasinuo Province, and even farther afield, specializing in these prepared medicines and related medicinal herbs. We are willing to retain the name 'Hundred Herbs Shop' and invite you, Mr. Lin, to contribute the intellectual property rights to your formulas as equity, becoming the second-largest shareholder in this new Hundred Herbs Shop chain, with corresponding rights to participate in decision-making and a twenty-percent share of profits. Naturally, Spirit Hall will be responsible for the chain's headquarters and management."
This proposal took Lin Yan somewhat by surprise. Retaining the Hundred Herbs Shop name and becoming the second-largest shareholder meant he would not completely lose control over the business derived from his formulas. Instead, he would use Spirit Hall's influence to bring the Hundred Herbs Shop brand onto a broader stage. Although his share of profits had fallen to twenty percent, the base and prospects had expanded countless times over. This was no longer simply selling formulas, but a deeper strategic partnership.
Lin Yan quickly weighed the advantages and disadvantages. Receiving one hundred thousand Gold Soul Coins at once would put out the fire singeing his brows. He would enjoy twenty percent of the proceeds over the long term; though the percentage was lower, with Spirit Hall behind it, the potential returns far exceeded those of a single corner of Nuoding City. More importantly, retaining the Hundred Herbs Shop brand and his status as a shareholder would leave him an important foothold and a recognized position for possible future development. Spirit Hall's move both lowered the immediate share of proceeds and demonstrated sincerity toward long-term cooperation. It was deft indeed.
Having made up his mind, Lin Yan raised his head, a suitably measured smile appearing on his face. "I can feel Spirit Hall's sincerity. Your proposal accounts for both the present and the future, Assistant Zhou. I consider it very fair. I agree to these terms of cooperation."
A hint of a smile also appeared on Zhou Ming's serious face. "You are decisive, Mr. Lin! In that case, we can draw up the detailed contractual terms. The one hundred thousand Gold Soul Coins can be paid in full within three days of signing."
The ensuing discussions went much more smoothly. With Grandmaster Ma Xiunuo as witness, both parties carefully finalized the contract's specific terms, including the method of calculating shares, rights to inspect the accounts, the equity structure of the new Hundred Herbs Shop chain, and Lin Yan's rights and obligations as a shareholder.
When Lin Yan signed his name on the formal cooperation contract and pressed his fingerprint onto it, the great stone weighing on his heart finally settled. Not only had the funding problem for the auction been readily resolved, but he had also found an unexpected path of expansion for the Hundred Herbs Shop.
After seeing Zhou Ming and Grandmaster Ma Xiunuo off, Lin Yan stood alone in the rear courtyard, gazing at the stars scattered across the night sky. With one hundred thousand Gold Soul Coins soon to be in hand, on top of his existing savings, he now had ample confidence for the auction. More importantly, this cooperation with Spirit Hall had shown him the possibility of rapidly accumulating resources by drawing on a vast power.
"The auction... it really is something to look forward to," Lin Yan murmured, his eyes glinting with anticipation for the future and determination.
He turned and returned to his room, once again directing his gaze toward the piece of dead wood and the iridescent spores.