Full Press Release Details
cph8kex991020107.txt
PRESS RELEASE DATED FEBRUARY 6, 2007
Crocker Coulson Donald Xu
President Vice President, Strategic Planning
CCG Elite China Pharma Holdings, Inc.
310 231-8600 ext 103 858-776-8880
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China Pharma Announces Successful Private Placement of $3.85
HAIKOU CITY, Hainan Province, PRC - February 6, 2007 - China Pharma Holdings,
Inc. ("China Pharma" or "the Company") (OTC BB: CPHI), a specialty
bio-pharmaceutical company that develops, manufactures and markets Western and
Chinese medicines, today announced that it has successfully completed the
private placement of approximately 2.5 million shares of the Company's common
stock at the price of $1.70 per share and 2.5 million Class A 3-year warrants to
purchase an aggregate of 1.25 million shares of the Company's common stock at a
strike price of $2.38 per share. Net proceeds to the Company of approximately
$3.85 million will be used for development of new drugs in pipeline and working
capital to support the Company's growth. Sterne, Agee & Leach, Inc. served as
the sole placement agent for the offering.
"This financing allows us to further the development of our new drugs at clinic
trial stage and provides the Company with additional working capital to support
the launch of several new drugs we have recently introduced into the market.
This transaction benefits both our customers and shareholders, by expediting our
progress of new drug development programs and strengthening our financial
position," commented Zhi-lin Li, China Pharma's President and CEO.
For more detailed information on the financing referred to in this release,
reference is made to the Company's Form 8-K filing with the Securities and
Exchange Commission and related Exhibits thereto.
Neither the common stock nor the warrants referred to in this release have been
registered under the Securities Act of 1933 and may not be subsequently offered
or sold by investors in the United States absent registration or an applicable
exemption from the registration requirement. The Company has agreed to file a
registration statement covering resale of the common stock and the warrants by
investors. This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute an offer,
solicitation or sale of any securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdiction.
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, vascular diseases, CNS and other
prevailing diseases. Helpson Bio-pharmaceutical Co., Ltd (Helpson), a specialty
bio-pharmaceutical company headquartered in Haikou City, Hainan province in
China, is a wholly owned subsidiary of China Pharma Holdings. For more
information, visit the company's website at www.chinapharmaholdings.com.
Safe Harbor Statement 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.