Health & Fitness
Health and Fitness
Health and Fitness
Wed, June 9, 2010
Tue, June 8, 2010 Aoxing Pharmaceutical Company Announces Completion of $8.05 Million Bank Loan Financing
NEW YORK, NY--(Marketwire - June 8, 2010) - Aoxing Pharmaceutical Company, Inc. (
The transaction with China Citic Bank is a bank note agreement in the amount of $3,657,956 (25,000,000 RMB) and matures on May 4, 2011. The transaction with Bank of Communications is a bank note agreement in the amount of $4,388,467 (30,000,000 RMB) and matures on April 22, 2011. The annual floating rates on these transactions are 5.841%, which was set to be 10% higher than the interest rate of the China People Bank rate. The notes are secured by the land use right and buildings of Hebei Aoxing.
In addition, Hebei Aoxing entered into a credit facility agreement with China Citic Bank in the amount of $4,754,173 (32,500,000 RMB) with an annual floating rate of 5.841%, which was set to be 10% higher than the interest rate of the China People Bank rate. The credit facility matures on April 28, 2011.
Aoxing Pharma will use a portion of the proceeds to repay approximately $5 million in existing debt with an average interest rate of 10% or higher. Additionally, Aoxing Pharma is exploring interest payment assistance options with the local government based on the enterprise incentive programs of the Chinese government.
"In aggregate, these transactions signal financial confidence and a positive outlook on our business by commercial banks in China, and provide us with the funding we need at an attractive cost of capital," said Zhenjiang Yue, Chairman and CEO of Aoxing Pharma. "This deal also affords us the ability to restructure approximately $5 million in debt at much more attractive interest rates, providing an immediate benefit to our bottom line and to shareholders. After considering a variety of options, we believe that these transactions together offer the most attractive approach to meet our financial and strategic objectives. Furthermore, we are working with the local Chinese government to explore interest payment waiver options, which would provide additional capital savings to our shareholders."
About Aoxing Pharmaceutical Company, Inc.
Aoxing Pharmaceutical Company, Inc is a US incorporated specialty pharmaceutical company with its main operations in China, specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, outside Beijing, Aoxing has the largest and most advanced manufacturing facility in China for highly regulated narcotic medicines. Its facility is one of the few GMP facilities licensed for the manufacture of narcotic medicines by the China State Food and Drug Administration (SFDA). It has a joint venture collaboration with Johnson Matthey Plc to produce and market narcotics and neurological drugs in China. It also has strategic alliance partnership with QRxPharma, Phoenix PharmaLabs, Inc and American Oriental Bioengineering, Inc. For more information, please visit: [ www.aoxingpharma.com ].
Safe Harbor Statement from Aoxing Pharmaceutical Company, Inc
Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended June 30, 2009, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
