NEW YORK, July 7 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB) today announced its intention to offer, subject to market conditions and other factors, $85 million aggregate principal amount of Convertible Senior Notes due 2015 to qualified institutional buyers in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act").
AOB currently expects to use approximately $30 million of the proceeds
from the offering to repurchase shares of its common stock pursuant to a
prepaid forward share repurchase transaction with an affiliate of the
placement agent, as counterparty. AOB expects to use the remaining net
proceeds from the offering for general corporate purposes, including for
working capital purposes and to fund possible acquisitions of and
investments in complementary businesses and products. In connection with
the prepaid forward repurchase transaction, AOB has been advised that the
counter party may enter into various derivative transactions or purchase or
sell shares of AOB's common stock concurrently with or following the
offering of the convertible notes. The counterparty has also advised AOB
that it may enter into, or unwind, various derivatives or purchase or sell
shares of AOB's common stock in secondary-market transactions following the
offering of the convertible notes. These activities may have the effect of
increasing, or preventing a decline in, the market price of AOB's common
stock concurrently with or following the offering of the convertible notes.
In addition, any hedging transactions by the counterparty following the
offering of the convertible notes may have an adverse impact on the trading
price of AOB's common stock
|SOURCE American Oriental Bioengineering, Inc.|
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