China Biologic Products Enters Into Private Placement Agreements to Raise $9.6 Million
June 08 2009 - 8:00AM
PR Newswire (US)
TAIAN CITY, China, June 8 /PRNewswire-Asia-FirstCall/ -- China
Biologic Products, Inc. (OTC:CBPO) (BULLETIN BOARD: CBPO) ("China
Biologic" or the "Company"), one of the leading plasma-based
pharmaceutical companies in the People's Republic of China ("PRC"),
today announced that the Company has entered into a securities
purchase agreement with certain accredited investors led by Essence
International Investment Limited, pursuant to which the Company
will issue 3.8% senior secured convertible notes due 2011 (the
"Notes"), in the aggregate principal amount $9,554,140. The Notes
are convertible into shares of China Biologic's common stock at a
conversion price of $4.00 per share. Along with the Notes, the
Company issued warrants to purchase up to 1,194,268 shares of the
Company's common stock at a price of $4.80 per share. The Company
intends to use the proceeds to pay part of the purchase price for
the interests it recently acquired in Xi'an Huitian Blood Products
Co., Ltd. and Chongqing Dalin Biologic Technologies Co., Ltd. and
for working capital and general corporate purposes. "This private
placement financing provides us with sufficient working capital as
we integrate our two recent acquisitions into our existing
operations," said Mr. Chao Ming Zhao, CEO of China Biologic
Products. "Going forward, we anticipate that the cash flows
generated by these acquisitions will provide a solid financial
basis for our future growth. Furthermore, we believe that our new
investors are highly experienced in the health care industry, will
provide us with valuable insight as we increase the scale of our
business." The securities issued in this private placement have not
been registered under the United States Securities Act of 1933, as
amended, or the securities laws of any other jurisdiction.
Accordingly, these securities may not be sold by investors in the
United States, except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements. For more detailed information on this financing, see
the Company's Current Report on Form 8-K which will be filed with
the Securities and Exchange Commission on or about June 5, 2009.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale would be unlawful. About
Essence International Investment Limited Essence International
Investment Limited is an investment vehicle formed in the British
Virgin Islands for the special purpose of investing in the Company
and is owned by several accredited investors with sophisticated
corporate finance skill sets and successful investment track
records. These accredited investors have solid experience in
providing growth capital to early and expansion stage companies in
China and are knowledgeable about the healthcare sector in
particular. About China Biologic Products, Inc. China Biologic
Products, Inc. (the "Company"), through its indirect majority-owned
subsidiary, Shandong Taibang Biological Products Co. Ltd., and
equity investments in Xi'an Huitian Blood Products Co., Ltd. and
Chongqing Dalin Biologic Technologies Co., Ltd. is currently the
largest non-state-owned plasma-based biopharmaceutical company
approved by the Chinese government. The Company is a fully
integrated biologic products company with plasma collection,
production and manufacturing, research and development, and
commercial operations. The Company's blood products are
irreplaceable in the application of medical emergencies, and
prevention and treatment for various diseases. It sells its
plasma-based biopharmaceutical products to hospitals and other
healthcare facilities in China. Safe Harbor Statement This release
may contain certain "forward-looking statements" relating to the
business of China Biologic Products, Inc. and its subsidiary
companies. All statements, other than statements of historical fact
included herein are "forward-looking statements," including
statements regarding: the impact of the private placement on the
business and operations of the Company; the ability of the Company
to achieve its commercial objectives; the business strategy, plans
and objectives of the Company and its subsidiaries; and any other
statements of non-historical information. These forward-looking
statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions,
involve known and unknown risks and uncertainties. Although the
Company believes that the expectations reflected in these
forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. Investors should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. The Company's actual results could differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in the Company's periodic reports that are filed with the
Securities and Exchange Commission and available on its website
(http://www.sec.gov/). All forward-looking statements attributable
to the Company or persons acting on its behalf are expressly
qualified in their entirety by these factors. Other than as
required under the securities laws, the Company does not assume a
duty to update these forward-looking statements. For more
information, please contact: Company Contact: Mr. Y. Tristan Kuo
Chief Financial Officer China Biologic Products, Inc. Tel:
+86-538-6202206 Email: Web: http://www.chinabiologic.com/ Investor
Relations Contact: Mr. Crocker Coulson, President CCG Investor
Relations Tel: +1-646-213-1915 (NY office) or Mr. Gary Chin, Tel:
+1-646-213-1909 Email: Web: http://www.ccgirasia.com/ DATASOURCE:
China Biologic Products, Inc. CONTACT: Mr. Y. Tristan Kuo, Chief
Financial Officer of China Biologic Products, Inc.,
+86-538-6202206, ; or Investor Relations, Mr. Crocker Coulson,
President, +1-646-213-1915 (NY office), , or Mr. Gary Chin,
+1-646-213-1909, both of CCG Investor Relations Web site:
http://www.chinabiologic.com/
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