HANGZHOU, China, April 15, 2019 /PRNewswire/ -- China Jo-Jo
Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading online and offline
retailer, wholesale distributor of pharmaceutical and other
healthcare products and healthcare provider in China, today announced that it closed a
registered direct offering with several institutional investors for
an aggregate of 4,000,008 shares of the common stock, at a purchase
price of $2.50 per share, for
aggregate gross proceeds of approximately $10 million to the Company. In a concurrent
private placement, the Company issued to the investors unregistered
warrants to purchase up to an aggregate of 3,000,006 shares of the
common stock at an exercise price of $3.00 per share. The warrants shall be initially
exercisable six months following issuance and expire five and
one-half years from the issuance date of the warrants.
The Company received net proceeds from the offering in the
amount of approximately $9.3 million,
after deducting the placement agent fees and the estimated offering
expenses payable by the Company.
H.C. Wainwright & Co., LLC acted as exclusive placement
agent for the offering.
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 were
offered only by means of a prospectus, including a prospectus
supplement, forming a part of the effective registration statement.
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 by
contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd
Floor, New York, NY 10022, by
calling (646) 975-6996 or emailing email@example.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 shares of common stock 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
About China Jo-Jo Drugstores,
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 Statement
This press release contains information about the Company's view
of its future expectations, plans and prospects that constitute
forward-looking statements. 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.
Chief Financial Officer
Investor Relations Director
Investor Relations Contact:
Ascent Investor Relations LLC
SOURCE China Jo-Jo Drugstores,