HAIKOU CITY, China, May 30 /Xinhua-PRNewswire-FirstCall/ -- China Pharma Holdings, Inc. ("China Pharma" or "Company") (OTC Bulletin Board: CPHI) which develops, manufactures, and markets generic and branded bio-pharmaceutical products in China, today announced that on May 30, 2008 it closed its recently announced financing, issuing five million shares of common stock at a purchase price of $2.00 per share and three-year warrants to purchase an aggregate of 1.25 million shares of the Company's common stock at an exercise price of $2.80 per share.
Net proceeds from the offering of approximately $9.3 million are expected to be used for expansion of the Company's existing product line, sales and marketing, and general working capital purposes.
Ms. Li, President and CEO of China Pharma commented, "We are very pleased to have completed this financing. The new capital should enable us to continue our revenue and earnings momentum by executing on currently available opportunities. The net proceeds will be used for the increasing of production capacity, promoting sales, further expanding our distribution network, and developing new drugs which are in various stages of the SFDA approval process. Additionally, we are actively working on the preparation of upgrading to a national exchange listing. Submitting our application is a high priority and our goal is to achieve a listing during the second half of calendar 2008."
Roth Capital Partners, LLC served as the sole placement agent in connection with the private placement.
For more detailed information on the financing referred to in this release, reference is made to the Company's latest Report on Form 8-K and related exhibits thereto being filed with the Securities and Exchange Commission on the May 28, 2008.
About China Pharma Holdings, Inc.
China Pharma Holdings, Inc. develops, manufactures, and markets generic and brand bio-pharmaceutical products in China that treat a wide range of conditions, including infections, hepatitis, cardiovascular and CNS diseases, and other prevailing diseases. Helpson Bio-pharmaceutical Co., Ltd (Helpson), a specialty pharmaceutical company headquartered in Haikou City, Hainan province in China, is a wholly owned subsidiary of China Pharma Holdings. For more information about China Pharma Holdings, Inc., please visit http://www.chinapharmaholdings.com .
Safe Harbor Statement:
Certain statements in this press release and oral statements made by China Pharma on its conference call in relation to this release, constitute forward- looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand, increased competition, failure to obtain or maintain intellectual property protection, downturns in the Chinese economy, uncompetitive levels of research and development, failure to obtain regulatory approvals, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
SOURCE China Pharma Holdings, Inc.