China Jo-Jo Drugstore announces $2.625M registered direct offering

China Jo-Jo Drugstores announced that it has entered into definitive agreements with a number of investors providing for the issuance of 1.75M ordinary shares, at a purchase price of $1.50 per share, in a registered direct offering for aggregate gross proceeds of $2.625M. Jo-Jo Drugstores also agreed to issue to the investors registered warrants to purchase up to 5.25M ordinary shares. The warrants will have a term of three years, be exercisable immediately at an exercise price of $2.50 per share. The closing of the sale of the securities is expected to occur on or about January 24, subject to satisfaction of customary closing conditions. Jo-Jo Drugstores intends to use the net proceeds from the offering for general corporate purposes and working capital.