HANGZHOU, China, June 1, 2020 /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
5,000,004 shares of common stock, at a purchase price of
$2.00 per share, in a registered
direct offering for aggregate gross proceeds of approximately
$10 million. Jo-Jo Drugstores also
agreed to issue to the investors unregistered warrants to purchase
up to 3,750,003 shares of common stock. The closing of the sale of
the securities is expected to occur on or about June 3, 2020, 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-month anniversary of the issuance
date at an exercise price an exercise price of $2.60 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 (but not the warrants
or the shares of common stock underlying the warrants) are being
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 phone (646)
975-6996 or e-mail 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 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
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 and a provider of healthcare services
in China. Jo-Jo Drugstores currently operates an online
pharmacy and retail drugstores with licensed doctors on site for
consultation, examination and treatment of common ailments at
scheduled hours. It is also a wholesale distributor of products
similar to those carried in its pharmacies. In addition, Jo-Jo
Drugstores cultivates 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: statements regarding
the registered direct offering of the company's shares of common
stock, including as to the consummation of the offering described
above, 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, market and other
conditions, 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.