Business
China Jo-Jo Drugstores Announces $10 Million Registered Direct Offering
HANGZHOU, China, June 1, 2020 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (Nasdaq: CJJD) ("Jo-Jo Drugstores" or the "Company"), a leading online and offline
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[{"type":"text","content":"HANGZHOU, China, June 1, 2020 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (Nasdaq: CJJD) (\"Jo-Jo Drugstores\" or the \"Company\"), a leading online and offline retailer, wholesale distributor of pharmaceutical and other healthcare products and healthcare provider in China, today announced that it has entered into definitive agreements with several institutional investors providing for the issuance of 5,000,004 shares of common stock, at a purchase price of $2.00 per share, in a registered direct offering for aggregate gross proceeds of approximately $10 million. Jo-Jo Drugstores also agreed to issue to the investors unregistered warrants to purchase up to 3,750,003 shares of common stock. The closing of the sale of the securities is expected to occur on or about June 3, 2020, subject to satisfaction of customary closing conditions.\nH.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.\nThe warrants will have a term of five and one half years, be exercisable commencing on the six-month anniversary of the issuance date at an exercise price an exercise price of $2.60 per share. \nChina Jo-Jo Drugstores intends to use the net proceeds from the offering for general corporate purposes and working capital.\nThe shares of common stock described above (but not the warrants or the shares of common stock underlying the warrants) are being offered pursuant to a \"shelf\" registration statement on Form S-3 (File No. 333-230686), which was declared effective by the United States Securities and Exchange Commission (the \"SEC\") on April 10, 2019. The shares of common stock may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. When filed with the SEC, copies of the final prospectus supplement and the accompanying prospectus relating to the registered direct offering may be obtained at the SEC's website at http://www.sec.gov. Electronic copies of the prospectus supplement and accompanying prospectus relating to the registered direct offering may also be obtained, when available, by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone (646) 975-6996 or e-mail [email protected]. \nThe warrants described above were offered in a private placement pursuant to an applicable exemption from th...