NEW YORK, June 3 American OrientalBioengineering (NYSE: AOB) today announced that it plans to make a privateoffer, subject to market conditions and other factors, to sell approximately$125 million in aggregate liquidation preference of newly issued convertiblepreferred stock. The convertible preferred stock is contingently putable,will pay dividends quarterly in arrears, and will be convertible upon theoccurrence of specified events into cash, shares of the Company's common stockor a combination of cash and shares of the Company's common stock, at theCompany's option.
The Company intends to grant the initial purchasers of the preferred stockan option to purchase up to an additional $25 million in aggregate liquidationpreference of the preferred stock to cover overallotments.
The Company anticipates using the net proceeds from the offering forworking capital; general corporate purposes; repurchases of outstandingcapital stock; to fund a prepaid forward contract the Company may enter into;and possible acquisitions of and investments in complementary businesses andproducts.
This press release does not constitute an offer to sell or thesolicitation of an offer to buy any securities, and shall not constitute anoffer, solicitation or sale in any jurisdiction in which such offering wouldbe unlawful. The preferred stock, and any common stock issuable uponconversion of the preferred stock, have not been registered under theSecurities Act of 1933 or the securities laws of any other jurisdiction andmay not be offered or sold in the United States without registration or anapplicable exemption from the registration requirements of the Securities Actof 1933 and applicable state securities laws.
Statements made in this press release are forward-looking and are madepursuant to the safe harbor provisions of the Securities Litigation Reform Actof 1995. Such statements involve risks and uncertainties that may cause actualresults to differ materially from those set forth in these statements. Theeconomic, competitive, governmental, technological and other factorsidentified in the Company's filings with the Securities and ExchangeCommission, including the Form 10-K for the year ended December 31, 2007 andthe Form 10-Q for the three months ended March 31, 2008, may cause actualresults or events to differ materially from those described in the forwardlooking statements in this press release. The Company undertakes no obligationto publicly update or revise any forward-looking statements, whether becauseof new information, future events, or otherwise.
About American Oriental Bioengineering
American Oriental Bioengineering, Inc. is a pharmaceutical companydedicated to improving health through the development, manufacture andcommercialization of a broad range of prescription and over the counterproducts in China. For more information, visit http://www.bioaobo.com.
SOURCE American Oriental Bioengineering, Inc.