China Jo-Jo Drugstores Announces the Termination of the Previously Proposed Registered Direct Offering

Rhea-AI Summary

China Jo-Jo Drugstores (Nasdaq: CJJD) announced the termination of a previously proposed registered direct offering of 2,258,888 ordinary shares and registered warrants for up to 4,517,776 shares to an institutional investor. This decision means no securities were sold under the Company's shelf registration statement on Form F-3 (No. 333-259692). The press release emphasizes the Company's role as a leading retailer and wholesale distributor of pharmaceutical products, along with healthcare services in China. Jo-Jo Drugstores operates both online and offline pharmacies, providing healthcare consultations. The Company also cautioned about various risks that may affect its future performance, such as competition and the ability to secure additional funding.

Positive

• None.

Negative

• Termination of the registered direct offering could potentially limit funding opportunities and growth.
• No securities were sold, which may indicate challenges in attracting institutional investors.

HANGZHOU, China, April 19, 2023 /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, announced today that the previously announced registered direct offering to issue 2,258,888 ordinary shares and registered warrants to purchase up to 4,517,776 ordinary shares to an institutional investor was terminated. No securities were sold pursuant to the Company's shelf registration statement on Form F-3 (No. 333-259692) in connection with such previously proposed offering.

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
+1-917-609-0333
tina.xiao@ascent-ir.com

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SOURCE China Jo-Jo Drugstores, Inc.

FAQ

What was announced by China Jo-Jo Drugstores on April 19, 2023?

China Jo-Jo Drugstores announced the termination of a previously proposed registered direct offering that included 2,258,888 ordinary shares.

What impact does the termination of the offering have on CJJD shareholders?

The termination means that no securities were sold, potentially limiting funding opportunities for growth and affecting investor confidence.

What is the reason behind China Jo-Jo Drugstores terminating its direct offering?

The press release does not specify the exact reason for the termination of the offering, but it signals challenges in securing institutional investment.

How many warrants were included in the terminated offering by CJJD?

The terminated offering included registered warrants to purchase up to 4,517,776 ordinary shares.