China Biologic Products, Inc., one of the leading plasma-based biopharmaceutical companies in China, announced that it has entered into a securities purchase agreement with accredited investors led by Essence International Investment Limited – an investment company registered in the British Virgin Islands. By this agreement, China Biologic will issue 3.8% senior secured notes due 2011 in the amount of $9,554,140, convertible into Chinese company’s common stock at $4.00 per share. The company also issued warrants to purchase up to 1,194,268 shares of its common stock at a price of $4.80 per share.
China Biologic reported its intention to use the proceeds of the deal to pay part of the purchase price for the interests it recently acquired in companies Xi'an Huitian Blood Products Co., Ltd. and Chongqing Dalin Biologic Technologies Co., Ltd., as well as for working capital and general corporate purposes.
Essence International Investment Limited is a company incorporated in the BVI for the purpose of investing in the Chinese company, and is owned by several accredited investors experienced in providing growth capital to early and expansion stage companies in China, particularly in healthcare industry.
