Beijing Med-Pharm (BMP), a US headquartered pharmaceutical marketing and distribution company, has said it expects to receive USD 30.6m in proceeds from a direct offering of 3.5 million units.
The company said it has agreed to sell the units to institutional and individual investors for about USD 9.40 per share for a total consideration of approximately USD 32.6m minus expenses.
Each unit consists of one share of the company's common stock and warrants to purchase two-tenths of a share at an exercise price of USD 9.37 per share.
The closing of the offering is expected on or around 22 August.
Philadelphia Brokerage was the placement agent for the offering and will receive 60,896 shares of common stock as partial payment of its fee.
The company said it plans to use the proceeds to advance its operations and strategic plan, which includes the acquisition of a 49 per cent minority stake in over-the-counter manufacturer Sunstone Pharmaceutical. BMP also plans to expand the distribution of its products in China.
Sunstone is a privately held manufacturer of OTC medicines, with operations in Hebei Province, China. Because Sunstone is privately owned and the transaction will take place in Hong Kong, Chinese government approval is not required. The transaction is expected to close in Q3 FY07.
In early August 2007, BMP announced that the Ministry of Commerce (MOFCOM) of the People's Republic of China approved Alliance BMP's acquisition of a 50 per cent stake in Guangzhou Pharmaceuticals, the third largest pharmaceutical wholesaler in China. Alliance BMP is a UK-based investment vehicle 80 per cent-owned by Alliance Boots and 20 per cent-owned by BMP.
emotive. is an award-winning healthcare communications agency working with leading global and EMEA companies in life sciences including medical device...