China Jo-Jo Drugstores Announces $3.37 Million Registered Direct Offering

Rhea-AI Summary

China Jo-Jo Drugstores (Nasdaq: CJJD) announced a $3.37 million registered direct offering, issuing 1.98 million ordinary shares at $1.70 per share. The deal is set to close around June 26, 2024, subject to standard closing conditions. Proceeds will be used for general corporate purposes and working capital. The offering is underpinned by a shelf registration statement on Form F-3, effective since December 19, 2022. For more details, investors can access the prospectus on the SEC's website.

China Jo-Jo Drugstores is a prominent online and offline retailer and distributor of pharmaceutical and healthcare products in China, also offering healthcare services through its retail locations and online pharmacy.

Positive

• Raised $3.37 million through the direct offering.
• Offering price of $1.70 per share could indicate market confidence.
• Funds raised will be used for general corporate purposes and working capital, potentially enhancing operations.
• Registered direct offering under a shelf registration statement, potentially ensuring regulatory compliance.

Negative

• Share dilution as 1.98 million new shares are issued might affect existing shareholder value.
• Potential investor concerns about why the company needs additional capital.

News Market Reaction

-10.04%

1 alert

-10.04% News Effect

On the day this news was published, CJJD declined 10.04%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

HANGZHOU, China, June 11, 2024 /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 a number of investors providing for the issuance of 1,980,000 million ordinary shares, at a purchase price of $1.70 per share, in a registered direct offering for an aggregate gross proceeds of approximately $3.37 million. The closing of the sale of the securities is expected to occur on or about June 26, 2024, subject to satisfaction of customary closing conditions.

Jo-Jo Drugstores intends to use the net proceeds from the offering for general corporate purposes and working capital.

The ordinary shares described above are being offered pursuant to a "shelf" registration statement on Form F-3 (File No. 333-259692), which was declared effective by the United States Securities and Exchange Commission (the "SEC") on December 19, 2022. The ordinary shares described above 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. 

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About China Jo-Jo Drugstores, Inc.

China Jo-Jo Drugstores, Inc. ("Jo-Jo Drugstores" or the "Company"), is a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products and a provider of healthcare services in China. Jo-Jo Drugstores currently operates an online pharmacy and retail drugstores with licensed doctors on site for consultation, examination and treatment of common ailments at scheduled hours. It is also a wholesale distributor of products similar to those carried in its pharmacies. For more information about the Company, please visit http://jiuzhou360.com. The Company routinely posts important information on its website.

Forward-Looking Statements

This press release contains information about the Company's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company's encourages you to review other factors that may affect its future results in the Company's annual reports and in its other filings with the Securities and Exchange Commission.

For more information, please contact:

Company Contact: 

Frank Zhao
Chief Financial Officer
+86-571-88077108
frank.zhao@jojodrugstores.com

Investor Relations Contact:

Tina Xiao
Ascent Investor Relations LLC
+1- 646-932-7242
investors@ascent-ir.com

View original content:https://www.prnewswire.com/news-releases/china-jo-jo-drugstores-announces-3-37-million-registered-direct-offering-302168704.html

SOURCE China Jo-Jo Drugstores, Inc.

FAQ

What did China Jo-Jo Drugstores announce on June 11, 2024?

China Jo-Jo Drugstores announced a $3.37 million registered direct offering, issuing 1.98 million ordinary shares at $1.70 each.

What is the significance of the $1.70 share price in the offering by CJJD?

The $1.70 share price in the offering could indicate confidence in the company's market value.

When is the closing date for China Jo-Jo Drugstores' direct offering?

The closing date for the direct offering is expected to be around June 26, 2024, subject to customary closing conditions.

How will China Jo-Jo Drugstores use the proceeds from the $3.37 million offering?

The net proceeds will be used for general corporate purposes and working capital.

What is a shelf registration statement mentioned in the China Jo-Jo Drugstores' offering?

A shelf registration statement allows a company to register a new issue of securities without having to sell the entire issue at once. It becomes effective on a specified date and the securities can be sold in parts over time.