China Medicine Corp., www.cmc621.com – the remarkable China-based research/developer, manufacturer and marketer of a variety of Western and traditional Chinese medicines (TCMs), herbal/dietary supplements and medical devices, reported approval by the Board of Directors yesterday of a new $2M stock repurchase program.
Slated to commence upon completion of the current repurchase program ($1.5M or 710k shares already repurchased by Dec. 22 of this year), which will end either via conclusion or the arrival of July 11, 2011, the new program would:
• Run over a 12-month interval, making strategic/timely purchases via open market or private transactions (in compliance with SEC Rules 10b-5, 10b5-1 and 10b-18)
• Be funded via an escrow account created as part of the Jan.28, 2010, subscription agreement with OEP CHME Holdings, LLC, the Company’s principal shareholder (OEP CHME is an affiliate of JP Morgan’s private equity arm, One Equity Partners)
Chairman and CEO of CHME, Senshan Yang, emphasized the Company’s strong cash position and how it allowed the “fundamental strength” to target a multiplicity of currently accessible strategic opportunities.
Yang articulated the tactical objectives held by CHME further, explaining that long-term shareholder value would be driven largely by “organic and acquisition-led growth”, ultimately positing an expanded product portfolio, as well as expanded Chinese logistical footprint as goals.
Yang pointed to achievements within the portfolio, like the Company’s proprietary recombinant for purging food and animal feed of harmful aflatoxins, Aflatoxin Detoxifizyme (rADTZ), for which CHME has completed all the requirements and is merely awaiting completion of the last step in the Chinese Ministry of Agriculture’s approval process.
Yang stressed the effort being put into relations with national/provincial MOA to expedite the process and assured investors that final approval was forthcoming.