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8-K - CHINA MEDICINE CORP | v206752_8k.htm |
China
Medicine Corporation Announces Additional $2 Million Stock Repurchase Program
–
Provides
Updates On Ongoing Stock Repurchase Program and rADTZ Application
–
Guangzhou, China, December 29,
2010 – China Medicine Corporation (OTC BB: CHME) (“China Medicine” or
“the Company”), a leading manufacturer, developer and distributor of Western
pharmaceuticals, traditional Chinese medicines (“TCM”), and other health
products in the People’s Republic of China, today announced that the Company’s
Board of Directors (the “Board”) has authorized a new stock repurchase plan (the
"New Repurchase Plan"). Under the New Repurchase Plan, the Board approved the repurchase of up to an additional
$2,000,000 worth of shares of the Company's common stock over the 12 month
period commencing upon the conclusion of the existing stock repurchase plan, in
the open market or in privately negotiated transactions from time to time, in
compliance with Rule 10b-5, Rule 10b5-1 and Rule 10b-18 of the Securities and
Exchange Commission.
The
Company intends to fund the New Repurchase Plan with funds from the escrow
account that was established pursuant to the Company’s subscription agreement
with its principal shareholder, OEP CHME Holdings, LLC, an affiliate of One
Equity Partners, the private equity arm of JP Morgan, dated January 28,
2010.
Under the
Company's previously announced stock repurchase
program, by December 22, 2010, the Company repurchased approximately $1.5
million of common stock, or approximately 710,000 shares. The Company
will continue to make purchases under its existing stock repurchase program
until the earlier of the conclusion of the existing stock repurchase plan or
July 11, 2011.
Mr.
Senshan Yang, Chairman and CEO of China Medicine Corporation, commented "We have
the fundamental strength to pursue a variety of opportunities with our
cash. We are actively investigating a variety of strategic
opportunities on the acquisition front in order to best utilize our cash and
ultimately create long-term shareholder value. We are committed to
driving organic and acquisition-led growth and we are very confident that our
dedicated efforts will help us realize our long-term business goal to expand the
Company’s product portfolio and geographical footprint in China and allow us to
deliver sustainable returns to our shareholders.”
Mr. Yang
continued, “Our proprietary recombinant, Aflatoxin Detoxifizyme (rADTZ), which
is used for removing aflatoxins in food and animal feed, is well at the last
step of the Chinese Ministry of Agriculture (MOA) approval
process. As we disclosed before, we have completed all requirements
and are still waiting for the last step onsite inspection by the MOA, which is
expected to commence in early next year. We are working closely with
national and provincial MOA to complete this process as expeditiously as
possible. At this point, we remain confident in receiving the final
approval in near future but cannot predict the actual timing of MOA
review.”
About
China Medicine Corporation
China
Medicine Corporation, a vertically integrated enterprise with a research and
development centre, manufacturing facility and well established sales network,
engages in the production and distribution of prescription and over the counter
("OTC") drugs, traditional Chinese medicine (“TCM”) products, herbs and
dietary-supplements, medical devices, and medical formulations in China. The
Company is developing a number of proprietary products for a variety of
indications, including oncology, high blood pressure and toxin removal from food
and animal feeds. For more information, please visit the Company's website at
http://www.cmc621.com.
Safe-Harbor
Statement
This
press release contains forward-looking statements concerning the Company’s
business and products. The Company’s actual results may differ materially
depending on a number of risk factors including, but not limited to, the
following: general economic and business conditions, obtaining regulatory
approval for new products, government support for rural health care, competition
from existing and new competitors, changes in technology, and various other
factors beyond its control. All forward-looking statements are expressly
qualified in their entirety by this cautionary statement and the risk factors
detailed in the Company's reports filed with the Securities and Exchange
Commission. China Medicine Corporation undertakes no duty to revise or update
any forward-looking statement to reflect events or circumstances after the date
of this release.
Contact
Information
ICR,
Inc.
In New
York: Ms. Christine Duan: 1-203-682-8200
In
Beijing: Ms. Wen Lei Zheng: 86-10-6599-7968
China
Medicine Corporation
In
Guangzhou: Ms. Gavin Chen: 86-20-8737-2102