HANGZHOU, China, June 3, 2020 /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 its
previously announced registered direct offering with certain
institutional investors for an aggregate of 5,000,004 shares of the
common stock, at a purchase price of $2.00 per share, for aggregate gross proceeds of
approximately $10 million to the
Company. In a concurrent private placement, the Company issued
to the same investors unregistered warrants to purchase up to an
aggregate of 3,750,003 shares of the common stock at an exercise
price of $2.60 per share. The
warrants shall be exercisable six months following issuance and
expire five and one-half years from the issuance date.
The Company received net proceeds from the offering in the
amount of approximately $9.24
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 (but not the warrants
or the shares of common stock underlying the warrants) 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
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 Statement
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 intended use of proceeds. 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.
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.