Exhibit 99.1
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China Pharma Holdings, Inc. Enters Into Private
Placement Agreements to Raise $10 Million
HAIKOU CITY, Hainan Province, China, May 28 2008 -- China Pharma Holdings, Inc.
("China Pharma" or "Company") (OTC BB: CPHI - News) which develops,
manufactures, and markets generic and branded bio-pharmaceutical products in
China, today announced that it has entered into a Securities Purchase Agreement
and a Registration Rights Agreement with institutional and accredited investors
("Investors") pursuant to which China Pharma shall issue and sell five million
shares of the Company's common stock at a purchase price of $2.00 per share. The
Investors shall also receive 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, subject to adjustment.
The net proceeds of the offering are expected to be applied to development of
new drugs in pipeline, expansion product line and general working capital.
Xx. Xx, President and CEO of China Pharma said, "We are very pleased to conduct
this new financing with high quality institutional investors including several
current shareholders. This round of financing will provide us with additional
capital to help expedite the development of our new drugs and fund our future
growth including the launch of several new drugs and further expansion of our
distribution network. We are also quite pleased with the caliber of high quality
institutional investors that participated in our private placement. The proceeds
raised from our investors reflect continued confidence in our ability to carry
out our strategic vision and maximize our shareholders value."
For more detailed information on the financing referred to in this release,
reference is made to the Company's Current Report on Form 8-K and related
exhibits thereto being filed with the Securities and Exchange Commission on the
date hereof.
The common stock issued in the private placement and issuable upon exercise of
the warrants have not been registered under the Securities Act of 1933, as
amended, and may not be subsequently offered or sold by the investors in the
United States, except pursuant to an effective registration statement or an
applicable exemption from the registration requirements. China Pharma has agreed
to file a registration statement covering the resale by the investors of the
common stock issued in the private placement and issuable upon exercise of the
warrants within 45 days of the closing date.
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.
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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
xxxx://xxx.xxxxxxxxxxxxxxxxxxx.xxx.
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.
Contact:
China Pharma Holdings, Inc.
Xxxxxx Xx, x00-000-0000-0000
xxx@xxxxxxxxxxxxxxxxxxx.xxx
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Or
HC International, Inc.
Xxxx Xxxxxxxxx, (000) 000-0000
Xxxx.xxxxxxxxx@xxxxxxxxxxxxxxx.xxx
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