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8-K - 8-K - Bohai Pharmaceuticals Group, Inc. | v208898_8k.htm |
EX-10.1 - EX-10.1 - Bohai Pharmaceuticals Group, Inc. | v208898_ex10-1.htm |
Bohai
Pharmaceuticals Closes $1.87 Million Financing in China
Non-brokered
financing priced at $2.50 per share,
a
23% premium to market price
YANTAI,
China, January 24, 2011 — Bohai Pharmaceuticals Group, Inc. (OTCBB/OTCQB: BOPH),
a China-based pharmaceutical company engaged in the production, manufacturing
and distribution of Traditional Chinese Medicine (TCM), announced the closing of
a financing transaction with investors located in China under which it sold an
aggregate of 748,382 unregistered shares of common stock at $2.50 per share, for
total gross proceeds of $1,870,955. This share price represents
greater than a 23% premium to the closing price on January 21st,
2011. There were no warrants attached to the financing and no broker
was utilized.
“This
financing reflects the strong support from local Chinese investors that know the
quality of our products and have confidence in our business strategy of
leveraging the Chinese government’s support of Traditional Chinese Medicines,”
said Mr. Hongwei Qu, Chairman, President and CEO of Bohai
Pharmaceuticals. “We feel this reflects a growing interest in our
company based on our continued ability to implement our business strategies and
drive Bohai’s revenues and profits. These additional financial
resources will help us to continue focusing on our internal research and
development initiatives to drive more products through to the
market.”
A total
of 44 individual investors participated in the financing. The shares
were sold pursuant to separate subscription agreements between Bohai and each
investor, dated as of January 21, 2011, the date on which the investors’
subscriptions were accepted. All of the investors are domiciled in and citizens
of China. The issuance of the shares was made in reliance on the
exemption from registration provided by Regulation S of the Securities Act of 1933, as amended, as an offshore
transaction involving non-U.S. persons.
About Bohai Pharmaceuticals Group,
Inc.
Based in
the city of Yantai, Shandong Province, China, Bohai Pharmaceuticals Group, Inc.
(OTCBB/OTCQB: BOPH) is engaged in the production, manufacturing and distribution
of herbal pharmaceuticals based on Traditional Chinese Medicine in China.
Bohai’s medicines address common health problems such as rheumatoid arthritis,
viral infections, gynecological diseases, cardio vascular issues and respiratory
diseases. Bohai’s products are sold either by prescription through hospitals or
over-the-counter through local pharmacies and retail drug store chains. Bohai
has approximately 600 employees, including approximately 300 sales
representatives, operating from 20 offices throughout China. Bohai’s lead
products, Tongbi Capsules and Tablets and Lung Nourishing Cream, are eligible
for reimbursement under China’s National Medical Insurance Program.
For
comprehensive investor relations material, including fact sheets, research
reports, presentations and video, please follow the appropriate link: Investor
Relations Portal, Investor Fact Sheet and Overview Video.
For
additional information, please visit Bohai’s corporate website:
www.bohaipharma.com.
Additional Information Relating to
Bohai’s Trading Data
Due to
certain recent disruptions in the marketplace relating to quotations on the OTC
Bulletin Board operated by FINRA (OTCBB), incomplete trading data may exist for
certain companies like Bohai. Real-time trading data for Bohai on the OTCQB
market is available through the below link. Readers are advised that OTCQB
market is operated by the owner of otcmarkets.com, and Bohai Pharmaceuticals
Group, Inc. makes no representation or warranty regarding the OTCQB
market.
For
real-time trading data for Bohai on the OTCQB market, including Level 2 quotes,
please visit: www.otcmarkets.com/stock/boph/quote.
Cautionary Note Regarding Forward
Looking Statements
This
press release and the statements of representatives of Bohai Pharmaceuticals
Group, Inc. (the “Company”) related thereto contain, or may contain, among other
things, “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements, other than statements
of historical fact included herein are “forward-looking statements,” including
any other statements of non-historical information. These forward-looking
statements are subject to significant known and unknown risks and uncertainties
and are often identified by the use of forward-looking terminology such as
“guidance,” “projects,” “may,” “could,” “would,” “should,” “believes,”
“expects,” “anticipates,” “estimates,” “intends,” “plans,” “ultimately” or
similar expressions. All forward-looking statements involve material
assumptions, risks and uncertainties, and the expectations contained in such
statements 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 factors and risks discussed in the periodic reports that the
Company files with the Securities and Exchange Commission (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. The
Company undertakes no duty to update these forward-looking statements except as
required by law.
Company
Contact:
Bohai
Pharmaceuticals Group, Inc.
Gene
Hsiao, Chief Financial Officer
212-521-4470
or
Financial
Communications Contact:
The Trout
Group
Danielle
Spangler
646-378-2924
dspangler@troutgroup.com