China Medicine Corporation Announces Closing of Financing, New Board Member
At closing, China Medicine sold 4,000,000 of the Company's common sharesat $3.00 per share for $12 million in gross proceeds and 1,920,000 of itsredeemable convertible preferred shares at $30 per share for $57.6 million ingross proceeds resulting in aggregate net proceeds of $66.5 million. Of theproceeds, $57.6 million has been placed in escrow and will be released to fundadditional capital expenditures and acquisition projects subject to approvalfrom OEP and the Company's board of directors. Each redeemable convertiblepreferred share is initially convertible into ten common shares.
"The closing of this transaction further augments our ability to executeour growth strategy. With the newly added manufacturing capabilities from theLifeTech Pharmaceuticals Co., Ltd ("LifeTech") acquisition, we are well on ourway to becoming a vertically integrated pharmaceutical company withself-manufactured products sold through our extensive distribution network,"said Mr. Senshan Yang, Chairman and CEO of China Medicine Corporation.
The Company also announced that Mr. Ryan Shih, resident partner in OEP'sHong Kong office, has joined the Company's board of directors. Prior tojoining OEP, Mr. Shih was an investment banker at both Merrill Lynch andDeutsche Bank covering the semiconductor, alternative energy, media, andhardware sectors throughout the Asia-Pacific region. Prior to that, Mr. Shihwas an attorney at Skadden Arps. Prior to his legal/financial career, Mr. Shihwas a captain in the United States Army. Mr. Shih holds a B.S. inAerospace/Mechanical Engineering from the United States Military Academy atWest Point, New York and a J.D. from Stanford Law School.
"We believe Mr. Shih's successful track record, financial acumen and legalexpertise will enhance our corporate oversight and governance policies, aswell as help us evaluate potential acquisition targets," said Mr. Yang. "Ilook forward to working with Mr. Shih and the entire board as we execute ourgrowth strategy."
About China Medicine Corporation
China Medicine Corporation is a developer, manufacturer and leadingdistributor in China of Western pharmaceuticals, traditional Chinese medicineproducts, other nutriceuticals, medical devices, and medical formulations. TheCompany also has its research and development force for certain products itmanufactures through OEM arrangement and distributes. The Company distributesits products to wholesale distributors including more than 300 hospitals and500 medicine companies that sell to over 2,000 drug stores in 28 provincesthroughout China. The Company actively develops a number of proprietaryproducts for a variety of uses, including oncology, high blood pressure andthe removal of toxins from food and animal feeds. For more information visitthe Company's website at http://www.chinamedicinecorp.com
This press release contains forward-looking statements concerning theCompany's business and products. The Company's actual results may differmaterially depending on a number of risk factors including, but not limited to,the following: general economic and business conditions, the Company'sprojections of LifeTech's financial results for the 2009 year that just endedand for 2010 are materially different from the actual results, obtainingregulatory approval for new products, the expected contribution of highermargin products, government support for rural health care, competition fromexisting and new competitors, changes in technology, the approval ofadditional capital expenditures/acquisition projects by OEP and board ofdirectors, and various other factors beyond its control. All forward-lookingstatements are expressly qualified in their entirety by this CautionaryStatement and the risk factors detailed in the Company's reports filed withthe Securities and Exchange Commission. China Medicine Corporation undertakesno duty to revise or update any forward-looking statement to reflect events orcircumstances after the date of this release.For more information, please contact: Company Contact: Mr. Robert Lu Chief Financial Officer China Medicine Corp. Tel: +86-20-8739-1718 Email: email@example.com Investor Relations Contact: Ms. Lei Huang, Account Manager CCG Investor Relations Tel: +1-646-833-3417 (NY Office) Email: firstname.lastname@example.org Web: http://www.ccgirasia.com Mr. Crocker Coulson, President Tel: +1-646-213-1915 (NY Office) Email: email@example.com
SOURCE China Medicine Corporation
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