CHANGCHUN, China and LOS ANGELES, May 26 ChinaYongxin Pharmaceuticals Inc. (OTC Bulletin Board: CYXND) ("the Company"), oneof the leading health products distribution and retail sales companies inChina, today announced that the Company has filed a Certificate of Amendmentto its Articles of Incorporation with the State of Delaware's Secretary ofState ("Certificate of Amendment") to effect a reverse stock split with aratio of 1-for-12, whereby each twelve (12) issued and outstanding shares ofthe common stock of the Company, par value $0.001 per share ("Common Stock")will be combined into one (1) share of Common Stock ("Reverse Split") with aneffective date of May 24, 2010. As described more fully in the DefinitiveInformation Statement filed by the Company with the Securities and ExchangeCommission ("SEC") on February 22, 2010, a reverse split of the common stock,with a ratio within a range of 1-for-10 and 1-for-15 (the "Reverse SplitRange") and with the exact ratio within the Reverse Split Range to bedetermined by the Company's Board of Directors (the "Board"), was adopted andapproved by written consent of the board of directors and the requisiteshareholders on February 8, 2010. On April 28, 2010, the Board adopted andapproved a 1-for-12 reverse split ratio within the Reverse Split Range.
Effective May 26, 2010, the Company's common stock commenced trading undera new OTC Bulletin Board trading symbol, "CYXND". The new trading symbol wasassigned by Financial Industry Regulatory Authority ("FINRA") in connectionwith the approval of the Reverse Split. The Company's trading symbol willrevert to "CYXN" within 20 business days. The Company's common stock, on asplit-adjusted basis, has a new CUSIP number of 16946Y 207. Following theReverse Split, the Company has approximately 5,269,952 shares of Common Stockissued and outstanding.
The Reverse Split was effectuated simultaneously for all of the Company'soutstanding common stock and the exchange ratio is the same for all shares ofoutstanding common stock. The Reverse Split will affect all of the Company'sstockholders uniformly and will not affect any stockholder's relativepercentage ownership interests in the Company, except to the extent that theReverse Split results in any of the stockholders receiving a fractional share.Stockholders and holders of options and warrants holding fractional shareswill have their shares rounded up to the nearest whole number. Common stockissued pursuant to the Reverse Split will remain fully paid and non-assessable.
Mr. Yongxin Liu, Chairman and Chief Executive Officer of the Companycommented, "As we continue to position the Company to be one of China'sleaders in health care sales and distribution, it will be important to havethe appropriate capital structure and investor base to further that growth.The Reverse Split, which is one of the necessary criteria for listing onNASDAQ, is part of our continuing investor relations efforts to attractinstitutional investors to our Company."
For further information regarding the Reverse Split, please refer to theCompany's Current Report on Form 8-K filed with the SEC on May 25, 2010.
About China Yongxin Pharmaceuticals Inc.
Founded in 1993, China Yongxin Pharmaceuticals Inc. is one of the leadingretailers and distributors of pharmaceuticals, medical equipment, othermedical-related products, health products including nutritional and dietarysupplements, and cosmetics in Northeastern China. The Company's retailoperations began in 2004, and in 2005, it gained franchise rights from one ofthe world's largest drug chains for China's Jilin Province. The Company hadbecome one of the fastest growing drug retailers in China through its retailchain of 99 drug outlets as well as its wholesale distribution in NortheasternChina. For more information about China Yongxin Pharmaceuticals Inc., pleasevisit http://www.yongxinchina.com .
Forward Looking Statements
This news release contains certain "forward-looking statements."Forward-looking statements are based on current expectations and assumptionsand are inherently subject to risks and uncertainties, some of which cannot bepredicted or quantified, and many of which are beyond the Company's control.The forward-looking statements are also identified through the use of words"believe," enable," "may," "will," "could," "intends," "estimate,""anticipate," "plan," "predict" "probable," "potential," "possible," "should,""continue," "project", "expect" and other words of similar meaning. Actualresults could differ materially from these forward-looking statements as aresult of a number of risk factors detailed in the Company's periodic reportsfiled with the SEC. Given these risks and uncertainties, investors arecautioned not to place undue reliance on such forward-looking statements andno assurances can be given that such statements will be achieved. ChinaYongxin Pharmaceuticals Inc. does not assume any duty to publicly update orrevise the material contained herein.For more information, please contact: CORPORATE China Yongxin Pharmaceuticals Inc. Sam Liu, COO Tel: +1-626-581-9098 Email: [email protected]
INVESTOR RELATIONS Strategic Growth International, Inc. Richard Cooper / Linda Ni Tel: +1-212-838-1444 Email: [email protected]
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SOURCE China Yongxin Pharmaceuticals Inc.