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EXHIBIT 99.1
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YA
Global Master SPV Ltd invests up to US$10,000,000 in Lotus
Pharmaceutical,
Inc. through Equity Line Facility
YA
Global Master SPV Ltd's makes
its first Chinese investment for the Year of the Tiger
with an investment in the fast
growing healthcare sector in China
(Beijing/Hong Kong/New Jersey, March
3, 2010) Lotus Pharmaceutical,
Inc. ("Lotus" or the "Company" ), United States OTC Bulletin Board ("LTUS:US"),
today announced that it entered into a US$10,000,000 Standby Equity Distribution
Agreement ("SEDA") with YA Global Master SPV Ltd ("YA Global"), a fund managed
by Yorkville Advisors, LLC of Jersey City, New Jersey USA ("Yorkville").
Yorkville's Hong Kong office advised on the transaction.
Lotus
engages in the production, trade, and retail of pharmaceutical products in the
People's Republic of China (PRC), Lotus plans to use the funds for the group's
general corporate and working capital purposes. Lotus currently sells twenty
prescription drugs covered by the National Health Insurance Program in the PRC,
and four of which are self-produced. The Company operates GMP certified
facilities, with direct sales channels to 42 hospitals and a national sales
network through 10 regional centres in the PRC.
Dr. Liu
Zhong Yi, Chief Executive Officer and Chairman of Lotus said, "We are extremely
pleased to welcome Yorkville as a long-term capital partner to Lotus. The
partnership will assist our development into a leading player in the growing
pharmaceutical market in China. The SEDA allows Lotus, at its discretion, to
draw down a total of US$10,000,000 of equity capital in tranches pursuant to the
terms of our agreement. This provides additional flexibility to fund our growth
strategy," he said.
Anthony
Chan, Managing Director and Head of Asia at Yorkville HK said, "We are pleased
to become a capital partner to Lotus, which is an emerging leader in the high
growth pharmaceutical sector in China. Lotus is based in Beijing and possesses
an attractive portfolio of pharmaceutical products which it is licensed to
produce and market through its extensive distribution network across China. In
addition, the Company has exciting products in the pipeline pending final SFDA
approval status and is engaged in the sale of over the counter drugs. The
pharmaceutical sector in general is fast growing, on the back of rapid economic
development and increasing demand for quality healthcare from the
public."
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Philip
Ho, Senior Managing Director and Head of Global Capital Markets for Yorkville
added, "This investment continues our expansion of investments into the Greater
China region and extends our focus in the healthcare sector. Our investment in
Lotus is indicative of our global investment approach and we look forward to
becoming a long term partner and to providing financial support to aid the
Company's expansion strategy."
About
Lotus Pharmaceuticals, Inc.
Lotus
Pharmaceuticals, Inc. engages in the production, trade, and retail of
pharmaceuticals in the People's Republic of China. Lotus operates through its
two controlled entities: Liang Fang Pharmaceutical, Ltd. and En Ze Jia Shi
Pharmaceutical, Ltd. Lotus' current drug development pipeline is focused on the
treatment of cerebro-cardiovascular disease, asthma, and diabetes. Liang Fang
sells drugs directly and indirectly through its national sales channels to
hospitals, clinics and drugstores in 30 provinces of the PRC. Its self-produced
products include four drugs covered by the National Health Insurance Program:
Valsartan for treating hypertension or high blood pressure; Brimonidine
Tartrate, a drug used to constrict adrenaline receptors; Nicergoline for
Injection, an a-receptor blockage nerve system blood-brain medicine; and
Levofloxacin, an anti-bacterial drug for the treatment of mild, moderate, and
severe infections caused by susceptible strains of the designated microorganisms
in conditions, such as acute maxillary sinusitis, acute bacterial exacerbation
of chronic bronchitis, community-acquired pneumonia, and acute pyelonephritis,
as well as complicated and uncomplicated skin and skin structure infections, and
urinary tract infections.
The
Company's product pipeline pending final SFDA approval status includes
Isosorbide Mononitrate-Sustained Release Tablets for cardiovascular disease,
Gliclazide-Controlled Release Tablets for Type 2 diabetes and Laevo-Bambutero
for asthma. Lotus Pharmaceuticals' products under pre-clinical studies comprise
Lovastatin, Verapamil Hydrochloride, and Valsartan-Controlled Release
tablets.
Lotus is
also involved in the retailing of both Western and traditional Chinese
medications and medical treatment equipment, research and development, leasing
space to various retail merchants and licensed medical practitioners, and the
sale of developed drug formulas. It currently operates 10 drug
stores in Beijing.
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About
Yorkville Advisors and Yorkville Advisors HK
Founded
in January 2001, Yorkville specializes in providing flexible and cost-effective
debt and equity financing to publicly listed companies worldwide. Yorkville has
a broad investment mandate and the flexibility to invest across many geographies
as well as sectors, including healthcare, natural resources, technology media
& telecommunication, industrials and shipping.
Yorkville
Advisors HK Limited ("Yorkville HK"), a SFC registered entity, is the Hong
Kong-based wholly owned sub-advisor to Yorkville, which is the investment
manager to a family of funds.
Yorkville
has offices in Jersey City, New Jersey; Jupiter, Florida; Denver, Colorado,
London and Hong Kong. It also has joint venture agreements in Italy, Greece and
Israel.
~ Ends
~
| For media enquiries, please contact: | For media enquiries, please contact: |
| Yorkville Advisors: | Lotus Pharmaceuticals Inc.: |
| Mr. Joshua Goldman-Brown | Yan Zeng |
| Kreab Gavin Anderson | CFO |
| Phone: +852 2218 9952 | Phone: +8610 6389 9868 |
| Email: igoldman-brown@kreabgavinanderson.com | Email: zv@lotuspharma.com |
IMPORTANT
DISCLOSURES
The
information contained herein is for informational and discussion purposes only
and is not intended to be, nor shall it be, construed as legal, tax or
investment advice or as an offer, or the solicitation of any offer, to buy or
sell any securities. Before entering into any investment you should thoroughly
review the respective transaction documents with your legal, tax and investment
advisors.
References
to Yorkville's investments consist of opportunities to finance companies in the
future. These transactions may or may not be consummated. You should be aware
that past performance is not necessarily indicative of future results and an
investment involves the risk of loss. Yorkville Advisors HK, Limited (a
sub-advisor to Yorkville Advisors, LLC) is, located at 10/F, Jardine House, 1
Connaught Place, Central, Hong Kong and is registered by the Securities and
Futures Commission (SFC) in Hong Kong CE No. ASD850.
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This
press release contains "forward-looking statements" within the meaning of the
"safe-harbor" provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements include, without limitation, any statement that
may predict, forecast, indicate, or imply future results, performance or
achievements, and may contain the words "estimate," "project," "intent,"
"forecast," "anticipate," "plan," "planning," "expect," "believe," "will
likely," "should," "could," "would," "may," or words or expressions of similar
meaning. Such statements are not guarantees of future performance and could
cause the actual results of the Company to differ materially from the results
expressed or implied by such statements, including, but not limited to, changes
from anticipated levels of sales, future national or regional economic and
competitive and regulatory conditions, changes in relationships with customers,
access to capital, increased costs, difficulties in developing and marketing new
products, marketing existing products, customer acceptance of existing and new
products, the time to get new drugs approved by the State Food and Drug
Administration and other factors. Additional information regarding risks can be
found in the Company's Annual Report on Form 10K and its prior filings with the
SEC. Accordingly, although the Company believes that the expectations reflected
in such forward-looking statements are reasonable, there can be no assurance
that such expectations will prove to be correct. The Company has no obligation
to update the forward-looking information contained in this press
release.
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