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8-K - WEIKANG BIO-TECHNOLOGY GROUP CO., INC. | v209813_8k.htm |
EXHIBIT 99.11
Weikang
Bio-Technology Announces Completion of $5.0 Million Private
Placement
Over-Subscribed
Offering Proceeds to Drive Media Campaign for Product Awareness
HARBIN,
China, February 1, 2011 /PRNewswire-Asia-FirstCall/ -- Weikang Bio-Technology
Group Co., Inc. (OTCBB: WKBT) ("Weikang" or the "Company"), a leading developer,
manufacturer and marketer of Traditional Chinese Medicine (TCM), Western
prescription and OTC pharmaceuticals and other health and nutritional products
in the People's Republic of China, today announced the completion of its private
placement offering for aggregate gross proceeds of $5.0 million (the “WKBT
Offering”).
A total
of 520,831 units were sold in the WKBT Offering, with each unit comprised of (i)
four shares of common stock, (ii) a three-year warrant to purchase one
share of common stock at an exercise price of $3.60 per share (the “Series C
Warrant”), and (iii) a three-year warrant to purchase one share of common stock
at an exercise price of $4.80 per share (the “Series D Warrant”). In connection
with the Offering, the Company issued a total of 2,083,324 shares of common
stock, Series C Warrants to purchase up to 520,831 shares of common stock and
Series D Warrants to purchase up to 520,831 shares of common stock.
Hunter
Wise Securities, LLC acted as the Company’s lead placement agent in connection
with the Offering.
“We are
pleased to announce the successful completion of our private placement
financing,” said Mr. Yin Wang, Chairman and CEO of WKBT. “Weikang continues to
advance as a U.S. publicly-traded company and now has a much more diversified
shareholder base,” said Chairman Wang. “The Offering will finance a media
campaign utilizing print, radio and television to create further awareness of
Weikang products in our markets.”
The
Offering proceeds from today’s completion of the $5.0 million placement and the
Company’s first financing for $2.5 million in January 2010 will meet WKBT’s
external investment requirement under the November 2007 FIE business license
granted by the Heilongjiang Office of the State Administration for Industry and
Commerce (“SAIC”) which in March 2010 was extended until November 2027. WKBT’s
wholly-owned subsidiary Sinary Bio-Technology Holdings Group, Inc. is the 100%
owner of Heilongjiang Weikang's registered capital.
The
securities offered in the private placement Offering have not been registered
under the Securities Act of 1933, as amended, or any state securities laws, and
unless so registered, the securities may not be offered or sold in the United
States except pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act of 1933, as amended, and
applicable state securities laws. The Company has agreed to file a registration
statement covering the resale of the shares of common stock and shares of common
stock issuable upon exercise of the Series C Warrants and the Series D Warrants
issued in the private placement Offering.
About
Weikang Bio-Technology Group Co., Inc.
Weikang
Bio-Technology Group Co., Inc. is principally engaged in developing,
manufacturing and distributing Traditional Chinese Medicine (TCM), and health
and nutritional supplements in China, in compliance with requisite Chinese
licenses and approvals. The Company is also expanding its business scope to
develop, manufacture and distribute Chinese herbal extract products and GMP
certified western prescription and OTC pharmaceuticals through its acquisition
of Tianfang Pharmaceutical Co., Ltd. For more information, please visit
http://www.weikangbio.com.
Safe
Harbor Statement
Certain
statements in this press release constitute forward-looking statements for
purposes of the safe harbor provisions under The Private Securities Litigation
Reform Act of 1995. 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. You 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.
Investor
Relations Contact:
Paul
Kuntz, Senior Specialist
RedChip
Companies, Inc.
Tel:
+1-800-733-2447, Ext. 0
Email:
info@redchip.com
Jing
Zhang, Chief Representative
RedChip
Companies Beijing Office
Tel: +86
10-8591-0635
Web:
http://www.RedChip.com
Placement
Agent Contact:
Dan
McClory, Managing Director
Hunter
Wise Financial Group, LLC
Tel:
+1-949-732-4102
Email:
dmcclory@hunterwise.com