BEIJING, Dec. 31, 2010 /PRNewswire-Asia-FirstCall/ -- Lotus Pharmaceuticals, Inc. (OTC Bulletin Board: LTUS) ("Lotus" or the "Company"), a fast-growing, profitable developer, manufacturer and seller of medicine and drugs in the People's Republic of China ("PRC"), announced today that the Company will effect a two-for-one reverse split of its common stock in order to meet minimum share price requirements in connection with its application to a national U.S. securities exchange. In connection with the reverse split, the number of authorized shares of the Company's common stock will be reduced from 200,000,000 to 100,000,000 and the number of shares outstanding will be reduced from 53,399,407 to approximately 26,699,704.
The reverse split will take effect at the open of business today, December 31, 2010, at which time every two (2) shares of Lotus' common stock issued and outstanding will be converted into one (1) share of common stock. The shares will commence trading today on the OTC Bulletin Board on a post-reverse split basis under the temporary ticker symbol "LTUSD." After 20 business days, the "D" will be removed and the stock will resume trading under the ticker symbol "LTUS." No fractional common shares will be issued as a result of the reverse split.
Mr. Zhongyi Liu, Lotus' Chairman and Chief Executive Officer, stated, "We are pleased to announce this reverse split, as it is an important step toward our goal of a national securities exchange listing. We believe that we initiated the process at an appropriate time and that it is in the best interests of our stockholders and the Company's future growth. With the reverse split approved, we are one step closer to completing the listing process."
About Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. is a fast-growing, profitable developer and producer of drugs and a licensed national seller of pharmaceutical items in the People's Republic of China (PRC). Lotus operates its business through its two controlled entities: Liang Fang Pharmaceutical, Ltd. and En Ze Jia Shi Pharmaceutical, Ltd. Lotus' current drug development is focused on the treatment of cerebro-cardiovascular diseases, asthma and diabetes. Liang Fang sells drugs directly and indirectly through its national sales channels to hospitals, clinics and drugs stores in 30 provinces of the PRC.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.
At the Company:
Xing Shen, Ph.D.
VP of Corporate Development
Lotus Pharmaceuticals, Inc.
Dave Gentry, President
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 104
SOURCE Lotus Pharmaceuticals, Inc.