U.S. Markets open in 59 mins

China Jo-Jo Drugstores Announces $3M Registered Direct Offering

Eddie Staley

China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its own online and retail pharmacies, today announced that it has entered into definitive agreements with a single health-care focused institutional investor to purchase an aggregate of $3 million of its common stock in a registered direct offering at $2.50 per share. Additionally, for each share of common stock purchased, the investor will receive a Warrant to purchase one-half of a share of the Company's common stock at an exercise price of $3.10 per share, which shall be initially exercisable six months following issuance and expire five years from the date of issuance. The closing of the offering is expected to take place on or about July 23, 2015, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co., LLC acted as exclusive placement agent in connection with the offering.

The net proceeds from this offering will be used for working capital purposes. A shelf registration statement (File No. 333-198001) relating to the shares and warrants issued in the offering has been filed with and declared effective by the Securities and Exchange Commission (the "SEC"). A prospectus supplement relating to the offering will be filed by the company with the SEC. Once it is filed, copies of the prospectus supplement, together with the accompanying prospectus, can be obtained at the SEC's website at http://www.sec.gov, from request at H.C. Wainwright & Co., LLC by e-mailing placements@hcwco.com, or from the Company at frank.zhao@jojodrugstores.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of China Jo-Jo in this offering. There shall not be any offer, solicitation of an offer to buy, or sale of securities in any state or jurisdiction in which such an offering, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offering will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

See more from Benzinga

© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.