Business
China Jo-Jo Drugstores Announces the Closing of $10 Million Registered Direct Offering
HANGZHOU, China, June 3, 2020 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading online and offline
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[{"type":"text","content":"HANGZHOU, China, June 3, 2020 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the \"Company\" or \"China Jo-Jo\"), a leading online and offline retailer, wholesale distributor of pharmaceutical and other healthcare products and healthcare provider in China, today announced that it closed its previously announced registered direct offering with certain institutional investors for an aggregate of 5,000,004 shares of the common stock, at a purchase price of $2.00 per share, for aggregate gross proceeds of approximately $10 million to the Company. In a concurrent private placement, the Company issued to the same investors unregistered warrants to purchase up to an aggregate of 3,750,003 shares of the common stock at an exercise price of $2.60 per share. The warrants shall be exercisable six months following issuance and expire five and one-half years from the issuance date. \nThe Company received net proceeds from the offering in the amount of approximately $9.24 million, after deducting the placement agent fees and the estimated offering expenses payable by the Company.\nH.C. Wainwright & Co., LLC acted as exclusive placement agent for the offering.\nThe shares of common stock described above (but not the warrants or the shares of common stock underlying the warrants) were 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 were offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. 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 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 the registration requirements of the Securities Act of 1933, as amended (the \"Act\"), and, along with the shares of commo...