Aoxing Pharmaceutical Company Announces Agreement on Note
Conversion
Note holders to Convert Approximately $6.6 million of
the
Company’s debt into common equity at $2.70 per
share
Jersey City, NJ, June 27, 2011 - Aoxing
Pharmaceutical Company, Inc. (NYSE Amex: AXN) ("Aoxing Pharma"), a
specialty pharmaceutical company focusing on research, development,
manufacturing and distribution of narcotic and pain-management
products, announced that the Company and six note holders,
including Chairman Mr. Zhenjiang Yue, have reached an agreement to
convert certain outstanding notes and accrued interest thereon
totaling 42,449,722.63 RMB (approximately USD$6,567,199) into
2,432,296 shares of the Company’s common stock at $2.70 per
share. On June 24, 2011, the closing price for the
Company’s securities as reported on the NYSE Amex was $1.40
per share.
The foreign currency exchange rate was based on
the rate of 6.4639 RMB/USD, the middle price of foreign currency
exchange rate published by the Bank of China on June 22,
2011. All notes had annual interest rate of 10%. One
note was due on March 26, 2012, and the others on April 28, 2014.
Upon closing of the debt conversion, the Company’s
obligations under the notes will be satisfied in full.
Mr. Zhenjiang Yue, Chairman and CEO of Aoxing
Pharma, commented, "I am very confident in the future of Aoxing
Pharma. The terms of this conversion transaction were
reviewed and approved unanimously by our Board of
Directors. I am delighted that these note holders were
willing to convert the notes into common stock, along with me, and
become long term Aoxing Pharma shareholders.”
About
Aoxing Pharmaceutical Company, Inc.
Aoxing
Pharmaceutical Company, Inc. is a US incorporated specialty
pharmaceutical company with its operations in China,
