China Jo-Jo Drugstores Inc. Announces Registered Direct Offering worth US$3 Million
Published By : 21 Jul 2015 |Published By : QYRESEARCH
China Jo-Jo Drugstores, Inc., which is a leading retail and wholesale distributer of pharmaceuticals and healthcare products in China through online and retail pharmacies has announced earlier this week that it is planning to enter into a definitive contract with single institutional investor in the healthcare sector to purchase common stocks worth an aggregate of US$3 million in a registered company. Further the company also revealed for every purchase of individual common share the investors will receive a warrant allowing them to invest in one-half of shares of the common stock in the Company at an exercise price decided at US$3.10 per share. This will be initially exercisable for six months after the issuance and will expire only after five years since the date of issuance. The offerings are expected to close on July 23, 2015, however the decision to close the offering will be subjected to the gratification of the customary norms during the closing. H.C. Wainwright & Co., LLC had assumed the role of the exclusive placement agent during the offering.
An inside source of the company revealed that the net proceeds earned by the company in the China healthcare industry will be used for purposes related to working capital. The Securities and Exchange Commission in China has already filed a formal registration statement related to the shares and warrants, which were issued during the offering. A press release has also been published in this regard, summarizing the necessary information which the investors would want to know about the offerings.
However, it is important to note here in this regard that the press release does not include an offer to sell or solicitation offer purchase any security of the offerings made by China Jo-Jo. The main growth engine of China Jo-Jo Drugstores, Inc., is online purchase of commercial health insurance by customers.