XI'AN, China, Jan. 4 /PRNewswire-Asia-FirstCall/ -- Biostar
Pharmaceuticals, Inc. (OTC Bulletin Board: BSPM) ("Biostar" or "the Company"),
a Xianyang-based developer, manufacturer and supplier of pharmaceutical
products and medical nutrients addressing a variety of diseases and conditions,
today announced a series of measures adopted to strengthen the Company's
corporate governance in compliance with the listing requirements of a senior
First, two directors, Mr. Michael Segal and Mr. Xifeng Nie, voluntarily
resigned from the Company's board of directors (the "Board"), and concurrently
with their resignations, the Board appointed two independent directors, Mr.
Zibing "Zack" Pan and Mr. Zhongyang Shang, to the Board, effective December 30,
Mr. Pan is a Certified Public Accountant, certified by the Oklahoma State
Board of Accountancy and member of American Institute of Certified Public
Accountant (AICPA) and Oklahoma Society of Certified Public Accountants
(OSCPA). Mr. Pan is currently chief financial officer of China Education
Alliance, Inc., to which he was appointed in August 2009. Prior to that
position, Mr. Pan was an audit manager with Eide Bailly CPAs & Business
Advisors ("Eide Bailly") at its Oklahoma City office. Mr. Pan had been
working at Eide Bailly since September 2005. From September 1998 to September
2005, Mr. Pan was a statistical analyst and economist with the State of
Oklahoma. From 1994 to 1996, Mr. Pan worked as a loan project officer for
Asian Development Bank Loan Management Office in Anhui, China. From 1988 to
1994, Mr. Pan was an associate professor at Anhui University, China, teaching
English language. Mr. Pan graduated with a Master of Business Administration
from the University of Central Oklahoma in 1999. He obtained his Bachelor of
Arts from Anhui University, China in 1988.
Mr. Shang is currently the director of Shaanxi Province Administration of
Industry and Commerce's Bureau of Fair Trading, a position he has held since
2006. From 1996 to 2006, Mr. Shang was the director of the Administration of
Industry and Commerce for the municipalities of Tongchuan and Xianyang in
Shaanxi Province. Mr. Shang was the deputy director of Tongchuan's Foreign
Trade Bureau from 1993 to 1996, and the director of Tongchuan's Transportation
Department from 1984 to 1992. From 1980 to 1983, Mr. Shang was an editor and
reporter with the Shaanxi Daily News. Mr. Shang is a graduate of the Central
Party College of Economics and Management.
The Board also established and appointed Mr. Pan and Mr. Shang to the
audit committee, along with Mr. Haipeng Wu, who has been on the Board since
July 2007 and named Mr. Pan as audit committee financial expert and chairman.
The Board additionally established and appointed Mr. Shang and Mr. Wu to the
compensation and nominating committees, with Mr. Shang as chairman of the
compensation committee and Mr. Wu as chairman of the nominating committees.
"The reorganization of the Board and the setup of three committees are
helpful for supervising our operation and management and achieving the
objectives of the Company" said Mr. Ronghua Wang, Chairman and Chief Executive
Officer of Biostar. "We believe that under the leadership of the new Board,
the Company will make significant achievements".
Lastly, the Board adopted a Code of Business Conduct and Ethics applicable
to all employees, officers and directors of the Company, in order to promote
ethical conduct and compliance with compliance with laws and regulations, to
provide guidance with respect to the handling of ethical issues, to implement
mechanisms to report unethical conduct, to foster a culture of honesty and
accountability, to deter wrongdoing, and to ensure fair and accurate financial
About Biostar Pharmaceuticals, Inc.
Biostar Pharmaceuticals, Inc., through its wholly-owned subsidiary in
China, develops, manufactures and markets pharmaceutical and medical nutrient
products for a variety of diseases and conditions. The Company's most popular
product is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter ("OTC")
medicine for chronic hepatitis B, a disease affecting approximately 10% of the
Chinese population. In addition to its hepatitis product, Biostar
manufactures two broad-based OTC products, two prescription-based
pharmaceuticals and thirteen nutrients. The Company has adopted international
standards and is in the process of applying for two patents.
Certain statements in this release concerning our future growth prospects
are forward-looking statements, within the meaning of Section 27A of the U.S.
Securities Act of 1933, as amended, and Section 21E of the U.S. Securities
Exchange Act of 1934, as amended, which involve a number of risks and
uncertainties that could cause actual results to differ materially from those
in such forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and uncertainties
regarding the success of our investments, risks and uncertainties regarding
fluctuations in earnings, our ability to sustain our previous levels of
profitability including on account of our ability to manage growth, intense
competition, wage increases in China, our ability to attract and retain highly
skilled professionals, time and cost overruns on fixed-price, fixed-time frame
contracts, client concentration, our ability to successfully complete and
integrate potential acquisitions, withdrawal of governmental fiscal incentives,
political instability and regional conflicts and legal restrictions on raising
capital or acquiring companies outside China. Additional risks that could
affect our future operating results are more fully described in our United
States Securities and Exchange Commission filings including our S-1 dated June
27, 2008, our Quarterly Report on Form 10-Q for the quarter ended September 30,
2009, our 10-K for the year ended December 31, 2008, and other recent filings.
These filings are available at http://www.sec.gov . We may, from time to time,
make additional written and oral forward-looking statements, including
statements contained in our filings with the Securities and Exchange
Commission and our reports to shareholders. We do not undertake to update any
forward-looking statements that may be made from time to time by or on our
For further information, contact:
Ms. Elaine Zhao, CFO
HC International, Inc.
Tel: US +1-914-669-5340
SOURCE Biostar Pharmaceuticals, Inc.