China Medical Technologies, Inc. Announces Proposed Offering of US$100 Million Convertible Senior Subordinated Notes.BEIJING -- China Medical Technologies, Inc. (Nasdaq: CMED CMED Coordinated Medical Emergency Direction CMED Central Massachusetts Emergency Dispatch ) today announced its proposed offering, subject to market and other conditions, of US$100,000,000 principal amount of Convertible Senior Subordinated Notes due 2011 to qualified institutional buyers In law, a Qualified Institutional Buyer is a purchaser of securities that is financially sophisticated and is legally recognized by security market regulators to need less protection from sellers than most members of the public. pursuant to Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. under the Securities Act of 1933, as amended (the "Securities Act"). China Medical also expects to grant the initial purchaser an option to purchase up to an additional US$25,000,000 principal amount of notes to cover overallotments, if any. Concurrent with the offering, the Company plans to enter into a simultaneous share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program of approximately US$30.0 million. China Medical intends to use the remaining proceeds for general corporate purposes and for the acquisitions of businesses, products and technologies that it believes will compliment its existing business. The convertible senior subordinated notes to be offered have not been registered under the Securities Act or the securities laws of any other jurisdiction. Unless they are registered, the convertible senior subordinated notes may be offered or sold only in transactions that are exempt from registration under the Securities Act and the securities laws of any other jurisdiction. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful. About China Medical China Medical Technologies is a leading China-based medical device company that develops, manufactures and markets products using high intensity focused ultrasound HIFU (high intensity focused ultrasound) (sometimes FUS or HIFUS) is a highly precise medical procedure using high-intensity focused ultrasound to heat and destroy pathogenic tissue rapidly. for the treatment of solid cancers and benign tumors benign tumor n. A tumor that does not metastasize or invade and destroy adjacent normal tissue. Benign tumor An abnormal proliferation of cells that does not spread to other parts of the body. and advanced in-vitro diagnostics products using enhanced chemiluminescence chemiluminescence /chemi·lu·mi·nes·cence/ (kem?i-loo?mi-nes´ens) luminescence produced by direct transformation of chemical energy into light energy. technology, to detect and monitor various diseases and disorders. For more information, please visit our website at www.chinameditech.com. China Medical Forward-Looking Statement 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. This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. 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. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the Company's expectation to this proposed offering of the notes, its plan to repurchase its shares and its intended use of the remaining proceeds from this offering contains forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in China Medical's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. China Medical does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. |
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