China Jo-Jo Drugstore announces $7M registered direct offering

China Jo-Jo Drugstores announced that it has entered into a definitive agreement with an institutional investor providing for the issuance of 2,258,888 ordinary shares, at a purchase price of $3.10 per share, in a registered direct offering for aggregate gross proceeds of approximately $7M. Jo-Jo Drugstores also agreed to issue to the Investor registered warrants to purchase up to 4,517,776 ordinary shares. The warrants will have a term of five years, be exercisable immediately at an exercise price of $3.10 per share. The closing of the sale of the securities is expected to occur on or about April 20, 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. Maxim Group is acting as the sole placement agent in connection with this offering.