China Medicine Corp. is a developer, manufacturer and leading distributor of western pharmaceuticals, traditional Chinese medicines, nutriceuticals and other medical formulations in China. The company distributes its products to wholesale distributors including more than 300 hospitals and 500 medicine companies that sell to over 2,000 drug stores in 28 provinces throughout China.
The company announced today that it has closed the equity private placement contemplated in its stock subscription agreement dated December 31, 2009. It completed the placement with One Equity Partners, the global private equity investment arm of JPMorgan (NYSE: JPM). China Medicine sold 4 million of the company’s common shares at $3 per share for $12 million in gross proceeds and 1.92 million of its redeemable convertible preferred shares at $30 per share for $57.6 million in gross proceeds, bringing the total to $57.6 million in gross proceeds resulting in net aggregate net proceeds of $66.5 million. Most of the proceeds have been placed in escrow and will be released to fund future capital expenditures and acquisitions.
China Medicine also announced that Mr. Ryan Shih, resident partner in One Equity Partners’ Hong Kong office, has joined the company’s board of directors. Prior to joining One Equity, he was an investment banker at both Merrill Lynch and Deutsche Bank covering the semiconductor, hardware, media and alternative energy sectors throughout the Asia-Pacific region.
Chairman and CEO of China Medicine, Senshan Yang, spoke of the closing of the transaction, “The closing of this transaction further augments our ability to execute our growth strategy.” With the newly added manufacturing capabilities from the recent LifeTech Pharmaceuticals acquisition, Mr. Yang believes that the company is well on its way “to becoming a vertically integrated pharmaceutical company with self-manufactured products sold through our extensive distribution network.”