Lee's Pharmaceutical to Have Strategic Partner as Shareholder
Hong Kong, Aug 11, 2009 AEST (ABN Newswire) - Lee's Pharmaceutical Holdings Limited ("Lee's Pharmaceutical" or the "Group", Stock Code: HKG:8221) is an integrated, research-driven and market-oriented pharmaceuticals group in China, signed a subscription agreement with Vivo Ventures Fund Cayman VI. L. P. (Vivo Ventures Fund), allowing the Group to enter into a strategic partnership with a financial investor experienced in biotechnology and pharmaceutical business.
Pursuant to the agreement, Lee's Pharmaceutical plans to issue 30,273,437 new shares. The subscription price per share of HK$ 0.64 represents a discount of approximately 17.95% to the closing price of the Group's share of HK$ 0.78 per share on 10 August 2009. The subscription shares represent approximately 6.79% of the Group's entire issue shares as enlarged by the allotment and issue of the subscriptions shares. The proceeds from the subscription of approximately US$ 2.5 million (equivalent to approximately HK$ 19.38 million) will be used for business expansion, capital expenditures and general working capital of the Group.
Vivo Ventures Fund is life-sciences focused venture capital firm with more than US$650 million under management. With more than 90 years of scientific and operational expertise in biotechnology, Vivo Ventures helps its portfolio companies develop corporate strategy, arrange licensing agreements and strategic alliances, recruit key management personnel and acquire new products and technology to accelerate growth. Its current portfolio includes more than 60 private and public biotechnology companies in the areas of biopharmaceuticals, specialty pharmaceuticals and medical devices.
According to Dr. Benjamin Li, CEO of the Group, said, "We are very glad to have Vivo Ventures being our shareholder. The agreements is not only provides the opportunity to raise additional funds for the Group's working capital and future investment purpose while strengthening its financial position, but also broadening the capital base of the Group. More importantly, it allows the Group to enter into a strategic partnership with a financial investor experienced in biotechnology and pharmaceutical business."
Mr. James Huang, Venture Partner of Vivo Ventures Fund, said, "We will use our best efforts to introduce the Group to initiate discussions and negotiations between the Group and such companies in the US territory regarding product rights in the PRC. Up to now, several products are being introduced to the Group for review and further discussion may be initiated. Our partnership with Lee's Pharmaceutical is a win-win corporation where synergy effect is expected combining the strengths of the two companies."
Issued by Porda International (Finance) PR Company Limited for and on behalf of Lee's Pharmaceutical Holdings Limited.
Contact
Porda International (Finance) P.R. Company Limited
Keely Chan
Tel: +852-3150-6760/ +852-9770-2950
keely.chan@pordafinance.com.hk
Alman Loong
Tel: +852-3150-6731/ +852-9107-8225
alman.loong@pordafinance.com.hk
Liz Yip
Tel: +852-3150-6739/ +852-9497-1685
liz.yip@pordafinance.com.hk
Fax: +852-3150-6728
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