Biostar Pharmaceuticals Inc (NASDAQ:BSPM) which is based in Peoples Republic of China and is into the manufacture of health foods and supplements disclosed on 10th March that it was planning to issue a public offer of 1.65 million shares of common stock and has priced the same at $2.49 per share. The announcement, more specifically the discounted pricing of close to 16 percent on its previous day close price of $2.97 led to the big sell off in the stock which resulted in a 19 percent melt off in the stock valuation.
Warrants Also Being Offered
Biostar Pharmaceuticals Inc (NASDAQ:BSPM) has also been advised to offer warrants which on exercising will yield close to 0.66 million shares of common stock. The warrants become redeemable immediately on issuance, and will attract $3.23 per share. The warrant exercise has been timed to expire in 2017.
Expected To Raise $4.1 M
The entire exercise is expected to help the loss making drugs manufacturer raise close to $4.1 million which would be used by the firm as working capital. The public offer is scheduled to be closed on 13th March and trading houses “Moody Capital Solutions, Inc. and Axiom Capital Management, Inc” have been retained by the drug maker to serve as its placement agents for this exercise.
iKang Healthcare Group (KANG) To Get Listed On NASDAQ
The follow up public offer by Biostar Pharmaceuticals Inc (NASDAQ:BSPM) comes on the same day that another Chinese medical services providing company iKang Healthcare Group (KANG) disclosed that it is offering a initial public offer of $150 million as it lists on the NASDAQ in the near future. The medical and health care services provider has been operating in close to 13 cities of China and claims on its website that it has provided health care facilities to a huge 3 million patients in the past fiscal year.