Beijing Med-Pharm Corporation Raises $15 Million in Private Placement.PLYMOUTH MEETING, Pa. -- Beijing Med-Pharm Corporation (Nasdaq:BJGP BJGP British Journal of General Practice ) announced today that it completed a private placement of 3,333,306 shares of its common stock to a group of institutional and individual accredited investors Accredited Investor A term used by the Securities and Exchange Commission (SEC) under Regulation D to refer to investors who are financially sophisticated and have a reduced need for the protection provided by certain government filings. Also known as "qualified purchaser". , for gross proceeds to Beijing Med-Pharm of $15 million. The investors also received five-year warrants to purchase an aggregate of 666,611 shares of common stock, which have an exercise price equal to $5.625 per share. Philadelphia Brokerage Corporation acted as the sole placement agent. Participants in the financing included Abacus Investments Ltd., Strata stra·ta n. A plural of stratum. strata Noun the plural of stratum USAGE: Strata is sometimes wrongly used as a singular noun: this stratum (not strata) Capital Management and Ashford Capital Management. "The enthusiasm of these investors highlights our success in implementing a unique business model for the introduction of Western pharmaceuticals in China The profile of China within the pharmaceutical industry is still low. China accounts for 20% of the world’s population but only 1.5% of the global drug market, although that market has been expanding by a 10% plus annually over the last 10 years. and, as a result, attracting a growing number of significant industry partners," said David Gao, President and Chief Executive Officer of Beijing Med-Pharm. "The funds from this financing will move us closer to completing our Chinese distribution network and allow us to investigate additional product licensing opportunities for our portfolio of high-value proprietary products." The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and were sold in a private placement pursuant to Regulation D of the Securities Act. The securities may not be offered or sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. absent registration or pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. The Company has agreed to file a registration statement covering the resale of the shares of common stock acquired by the investors and shares of common stock issuable upon exercise of the warrants acquired by the investors. About Beijing Med-Pharm Corporation Beijing Med-Pharm is a pharmaceutical marketing and distribution company that offers the following services in China: pre-market entry analysis; clinical trial management; product registration; market research; pharmaceutical distribution to hospitals; and pharmaceutical marketing to physicians, hospitals and other healthcare providers. Forward Looking Statements In addition to historical facts or statements of current condition, this press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including statements regarding our expectations regarding the use of proceeds from this private placement. Forward-looking statements provide Beijing Med-Pharm's current expectations or forecasts of future events. Actual results could differ materially from those reflected in these forward-looking statements due to general financial, economic, regulatory and political conditions affecting the biotechnology and pharmaceutical industries and the Chinese pharmaceutical market, and due to other risks and uncertainties set forth in our Annual Report of Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005, and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31, 2006, and September 30, 2006. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Beijing Med-Pharm undertakes no obligation to update publicly any forward-looking statement. |
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