PLYMOUTH MEETING, Pa., March 16 /PRNewswire-Asia-FirstCall/ -- BMP Sunstone Corporation (Nasdaq: BJGP) ("BMP Sunstone", "we" or the "Company"), today announced that the Company is calling its $12.4 million of 10.0% Secured Promissory Notes due May 1, 2009 (the "Original Notes"). In addition, the Company announced the completion of the following transactions:
-- Exchanged $1.0 million in principal amount 10.0% senior secured promissory notes for $1.0 million in principal amount of 12.5% March Exchange Secured Convertible Notes due July 1, 2011. -- Issued $6.35 million in principal amount of 12.5% March Cash Secured Convertible Notes due July 1, 2011 to qualified institutional and accredited investors. -- Completed a registered direct public offering of $7.0 million in principal amount of 12.5% Subordinate Convertible Notes due July 1, 2011.
As a result of these note financings, the Company now has an aggregate of $25 million of 12.5% notes due July 1, 2011. Due to the timing of these transactions, the Company has delayed the filing of its Form 10-K and will file a Form 12b-25 in order to secure an extension. The Company will release fourth quarter and full year 2008 financial results on Tuesday, March 17, 2009, via press release and conference call to be held at 5:00 pm ET.
David Gao, Chief Executive Officer of BMP Sunstone, commented, "This exchange completes our effort to significantly increase our financial flexibility so that we can put cash to work to grow our business, integrate our recent acquisitions and launch new products. We are particularly pleased that our existing investors have continued to support the Company. We believe we are well-positioned to capitalize on the long-term growth prospects in China's dynamic healthcare marketplace, especially during these challenging economic conditions."
Additional details regarding the note financing transactions noted above, including a description of the notes, the conversion price and repricing mechanism and the security for the March Exchange Second Convertible Notes and March Cash Second Convertible Notes, are included in two Forms 8-K filed with the Securities and Exchange Commission earlier today.
About BMP Sunstone Corporation
BMP Sunstone Corporation is a specialty pharmaceutical company that is building a proprietary portfolio of branded pharmaceutical and healthcare products in China. Currently this portfolio includes eight products under exclusive multi-year licenses for China, primarily focused on women's health and pediatrics. The Company also owns Sunstone Pharmaceutical Co. Ltd., which manufactures leading pediatric and women's health products, including two of China's most recognized brands, "Hao Wawa" and "Confort," sold through approximately 120,000 pharmacies in China. The Company also provides pharmaceutical distribution services through its subsidiaries in Beijing and Shanghai, and through its affiliate, Guangzhou Pharmaceuticals Corp. The Company has its main office in Beijing, with a US office in Plymouth Meeting, PA. For more information, please visit http://www.bmpsunstone.com .
|SOURCE BMP Sunstone Corporation|
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