BEIJING, China & COVENTRY, Conn.--(BUSINESS WIRE)--March 29, 2004--Beijing Med-Pharm Corporation (OTC PK:BJGP) today announced that it has closed a private placement offering of 8,695,652 restricted common shares to accredited and institutional investors. The common shares were sold at a price of $1.15 per share for net proceeds of approximately $9,002,000. Philadelphia Brokerage Corporation acted as financial advisor and placement agent. Beijing Med-Pharm intends to use approximately half of the net proceeds for the acquisition of two pharmaceutical distribution businesses in the People's Republic of China, and the balance for general corporate and working capital purposes. However, the company can give no assurance that it will be able to complete the acquisition of either or both of the pharmaceutical distribution businesses.
David (Xiao Ying) Gao, President and Chief Executive Officer of Beijing Med-Pharm stated, "The issuance of these securities will allow Beijing Med-Pharm to introduce a number of new products in 2004 and also allow us to pursue a strategy of acquiring distribution businesses within Beijing and throughout China. The combination of these two actions should put us on the road to becoming a successful "end to end" solution, allowing foreign companies to team with us in offering pharmaceutical products that can reach ultimate consumers in China."
Beijing Med-Pharm Corporation is incorporated in Delaware and currently its sole operating subsidiary is Beijing Med-Pharm Market Calculating Co. Ltd. ("BMP China"), a wholly-owned foreign enterprise, organized under the laws of the People's Republic of China. BMP China offers a variety of services to multinational and domestic pharmaceutical companies, including pre-market entry analysis, clinical trial management, product registration, market research and physician-oriented drug marketing.
For additional information regarding the matters that are the subject of this press release, you may contact Edwin Norse, Treasurer of Beijing Med-Pharm Corporation, at 860-538-6630.
Contacts
Beijing Med-Pharm Corporation Edwin Norse, 860-538-6630