SHENZHEN, China, Oct. 26, 2011 /PRNewswire-Asia/ -- Global Pharm
Holdings Group, Inc. (OTCBB: GPHG) ("Global Pharm" or the
"Company"), a China-based, growing
vertically integrated pharmaceutical company engaged in
pharmaceutical-related products distribution, Traditional Chinese
Medicine ("TCM") herbs cultivation and processing business through
its subsidiaries in Anhui,
Jilin, Guangdong and Shandong provinces, today announced that it
has completed the entire US$15
million redeemable convertible bonds financing (the
"Financing") by Blazer Delight Limited, an investment vehicle owned
by a fund managed by Asia-based
Gen2 Partners Limited ("Gen2 Partners").
Global Pharm will use the net proceeds from this Financing for
the expansion of the Company's and its subsidiaries' distribution
network within the People's Republic of
China ("PRC"); for acquisitions of pharmaceutical companies
in the PRC; and for general working capital purposes.
The Financing has been completed with two closings.
Specifically, on September 21, 2011,
the Company issued redeemable convertible bonds in the aggregate
principal amount of US$10,000,000
under the Financing. Twenty business days later, on October 20, 2011, the Company issued redeemable
convertible bonds in the aggregate principal amount of US$5,000,000, and completed the Financing. Any
time on or prior to the maturity dates, the bonds are convertible
into common stock of the Company at a price of US$5.00 per share.
"We are pleased to announce our partnership with Gen2 Partners,
one of the leading investment management and advisory companies in
Asia," commented Mr. Yunlu Yin, Chairman and Chief Executive Officer
of Global Pharm. "Global Pharm and Gen2 Partners have reached an
affirmative prospect for the Company's regional-focused
distribution strategy and its acquisition plan. This Financing will
assist us to accelerate the consolidation plan of our newly
acquired subsidiaries and strengthen our TCM cultivation business
in Shandong province."
"The Chinese domestic consumption model is developing rapidly
and will remain the driving force for much of China's continued growth in the coming years.
After much in-depth research, we believe consolidation in the
pharmaceutical sector in China is
poised to take shape in the next 6 to 24 months, and we want to be
ahead of the curve. We identified the Company, led by Mr. Yin, to
be a strong contender to become a dominant player in the
pharmaceutical sector in China. We
want to add strategic values to the management to realize the
vision to grow Global Pharm's business through robust organic
growth as well as targeted acquisitions on a nationwide basis,"
commented Mr. Barry Lau, Managing
Partner and Chief Investment Officer of Gen2 Partners. He
continued, "The Company is poised to take advantage of
pharmaceutical industry consolidation opportunities in the PRC, and
is creating synergies among its TCM cultivation, processing and
pharmaceutical distribution units. We are very excited to provide
Global Pharm with this financial resource and looking forward to a
cooperative relationship with the Company."
Please refer to the Company's Form 8-K filed with the Securities
and Exchange Commission on September 23,
2011 and today for the summary of the terms of the
Financing.
About Global Pharm
Global Pharm Holdings Group, Inc., a growing integrated
pharmaceutical company, is engaged in the pharmaceutical
distribution, Traditional Chinese Medicine (TCM) herb cultivation
and herbal pieces processing business in China. The Company focuses on building
regional distribution channels, as well as local capillary sales
network with high-margin products portfolio. Currently, its sales
network covers Shandong,
Jilin, Anhui and Guangdong provinces. Global Pharm seeks to
establish an integrated value chain in the pharmaceutical industry
through strategic acquisitions within TCM production,
pharmaceutical distribution and the retail sectors. For further
information, please visit the Company's corporate website at
http://www.globalpharmholdings.com.
About Gen2 Partners
Gen2 Partners Limited is an Asia-based independent alternative asset
management firm, and is one of the leading investment management
and advisory companies in Asia
currently with firm-wide AUM and assets under advisory of
approximately US$1 billion. Its
diversified business comprises fund of hedge funds, hedge fund and
private equity. For further information, please visit Gen2
Partners' corporate website at http://www.gen2partners.com.
Forward-looking Statements
Certain statements set forth in this press release contain or
may contain forward-looking statements and information that are
based upon beliefs of, and information currently available to, our
management as well as estimates and assumptions made by our
management. Such statements reflect the current view of our
management with respect to future events and are subject to risks,
uncertainties, assumptions and other factors as they relate to our
industry, our operations and results of operations, plans for
future facilities, capital-expenditure plans and any businesses
that we may acquire. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements. Except as required by applicable law, including the
U.S. federal securities laws, we do not intend to update any of the
forward-looking statements to conform them to actual results.
For Additional Information Contact
Global Pharm Holdings Group, Inc.
Ms. Susan Liu
Phone: +86-755-3693-9373
Email: susanliu@globalpharmholdings.com
SOURCE Global Pharm Holdings Group, Inc.