HANGZHOU, China, April 11, 2019 /PRNewswire/ -- China
Jo-Jo Drugstores, Inc. (Nasdaq: CJJD) ("Jo-Jo Drugstores" or
the "Company"), a leading online and offline retailer, wholesale
distributor of pharmaceutical and other healthcare products and
healthcare provider in China,
today announced that it has entered into definitive agreements with
several institutional investors providing for the issuance of
4,000,008 shares of common stock, at a purchase price of
$2.50 per share, in a registered
direct offering for aggregate gross proceeds of approximately
$10.0 million. Jo-Jo Drugstores also
agreed to issue to the investors unregistered warrants to purchase
up to 3,000,006 shares of common stock. The closing of the sale of
the securities is expected to take place on or about April 15, 2019, subject to satisfaction of
customary closing conditions.
H.C. Wainwright & Co. is acting as the exclusive placement
agent for the offering.
The warrants will have a term of five and one half years, be
exercisable commencing on the six months anniversary of the
issuance date and have an exercise price of $3.00 per share.
China Jo-Jo Drugstores intends to use the net proceeds from
the offering for general corporate purposes and working
capital.
The shares of common stock described above were offered pursuant
to a "shelf" registration statement on Form S-3 (File No.
333-230686), which was declared effective by the United States
Securities and Exchange Commission (the "SEC") on April 10, 2019. The shares of common stock may be
offered only by means of a prospectus, including a prospectus
supplement, forming a part of the effective registration statement.
When filed with the SEC, copies of the final prospectus supplement
and the accompanying prospectus relating to the registered direct
offering may be obtained at the SEC's website at
http://www.sec.gov. electronic copies of the prospectus supplement
and accompanying prospectus relating to the registered direct
offering may also be obtained, when available, by contacting H.C.
Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor,
New York, NY 10022, by calling
(646) 975-6996 or emailing placements@hcwco.com.
The warrants described above were offered in a private placement
pursuant to an applicable exemption from the registration
requirements of the Securities Act of 1933, as amended (the "Act"),
and, along with the ordinary shares issuable upon their exercise,
have not been registered under the Act, and may not be offered or
sold in the United States absent
registration with the SEC or an applicable exemption from such
registration requirements.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state or
jurisdiction.
About China Jo-Jo Drugstores, Inc.
China Jo-Jo Drugstores, Inc.
("Jo-Jo Drugstores" or the "Company"), is a leading online and
offline retailer and wholesale distributor of pharmaceutical and
other healthcare products in China. Jo-Jo Drugstores currently operates
retail drugstores and an online pharmacy. It is also a wholesale
distributor of products similar to those carried in its pharmacies
and it cultivates and sells herbs used for traditional Chinese
medicine. For more information about the Company, please visit
http://jiuzhou360.com. The Company routinely posts important
information on its website.
Forward-Looking Statements
This press release contains information about the Company's
view of its future expectations, plans and prospects that
constitute forward-looking statements, such as: the registered
direct offering of the company's shares of common stock, including
as to the consummation of the offering described above, the size of
the offering, the expected proceeds from the offering, the intended
use of proceeds and the timing of the closing of the
offering. Actual results may differ materially from historical
results or those indicated by these forward-looking statements as a
result of a variety of factors including, but not limited to, risks
and uncertainties associated with its ability to raise additional
funding, its ability to maintain and grow its business, variability
of operating results, its ability to maintain and enhance its
brand, its development and introduction of new products and
services, the successful integration of acquired companies,
technologies and assets into its portfolio of products and
services, marketing and other business development initiatives,
competition in the industry, general government regulation,
economic conditions, dependence on key personnel, the ability to
attract, hire and retain personnel who possess the technical skills
and experience necessary to meet the requirements of its clients,
and its ability to protect its intellectual property. The
Company's encourages you to review other factors that may affect
its future results in the Company's annual reports and in its other
filings with the Securities and Exchange Commission.
For more information, please contact:
Company Contact:
Frank Zhao
Chief Financial Officer
+86-571-88077108
frank.zhao@jojodrugstores.com
Steve Liu
Investor Relations Director
steve.liu@jojodrugstores.com
Investor Relations Contact:
Tina Xiao
Ascent Investor Relations LLC
+1-917-609-0333
tina.xiao@ascent-ir.com
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SOURCE China Jo-Jo Drugstores,
Inc.