LIUZHOU CITY, Guangxi, China, March 2, 2011 /PRNewswire-Asia/ -- China BCT Pharmacy Group, Inc., (OTC Bulletin Board: CNBI), ("China BCT" or the "Company"), a leading pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China, today announced that it completed the closing of its Series A Convertible Preferred Shares Purchase Agreement (the "Purchase Agreement") with Milestone Longcheng Limited ("Milestone") on March 2, 2011. Pursuant to the agreement, the Company issued 9,375,000 Series A Convertible Preferred Shares (the "Preferred Shares") to Milestone in exchange for aggregate gross proceeds of $30 million. Net proceeds from the transaction will be used to fund China BCT's wholesale distribution and retail pharmacy growth initiatives, including investment in a modern logistics center in Guangxi.
"We are very pleased to announce the closing of the preferred share purchase agreement with Milestone. This transaction provides us with significant capital to invest in the exciting growth opportunities we see in retail pharmacy and wholesale distribution, while giving us access to Milestone's invaluable strategic insight. We believe this deal represents an important validation of our strategy to capitalize on China's healthcare reform policies, industry consolidation and increasing demand for pharmaceutical products and services," commented Hui Tian Tang, Chairman and CEO of China BCT Pharmacy. "We are fortunate to have the guidance and support of Milestone as China BCT begins a new growth chapter focused on building market-leading businesses."
About China BCT
China BCT is engaged in pharmaceutical distribution, pharmacy retailing, and the manufacture of pharmaceuticals products through its subsidiaries Guangxi Liuzhou Baicaotang Medicine Limited, Hefeng Pharmaceutical Co. Limited, and Guangxi Liuzhou Baicaotang Medicine Retail Limited in Guangxi province, China. It operates a large regional retail network in Guangxi province, consisting of 187 directly owned retail stores in Guangxi province and currently over 8,000 products are distributed through the Company's wholesale distribution network. For more information, please visit www.china-bct.com .
About Milestone Capital
Milestone Capital is a private equity fund dedicated to investing in leading high growth companies operating in China. With offices in Beijing and Shanghai, Milestone Capital manages Milestone China Opportunities Fund I and Milestone China Opportunities Fund II. Milestone Longcheng is an investment vehicle held by Milestone China Opportunities Fund II.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include estimates and other statements reflecting expectation and involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including: changes from anticipated levels of sales; future international, national or regional economic and competitive conditions; changes in relationships with customers; access to capital; difficulties in developing and marketing new products and services; marketing existing products and services; customer acceptance of existing and new products and services; and other factors detailed in the Company's periodic filings with the Securities and Exchange Commission (http://www.sec.gov). 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 presentation.
For more information, please contact:
Investor Relations Contact:
Ms. Shelly Zhang, Chief Financial Officer
CCG Investor Relations
China BCT Pharmacy Group, Inc.
Mr. Crocker Coulson, President
Mr. Kalle Ahl, CFA, Account Manager
SOURCE China BCT Pharmacy Group, Inc.