BEIJING, May 30 /Xinhua-PRNewswire-FirstCall/ -- Lotus Pharmaceuticals, Inc. (OTC Bulletin Board: LTUS) ("Lotus" or the "Company"), a pharmaceutical company in the People's Republic of China ("PRC"), today reiterates its confidence in meeting the "make good" earnings target of net income $13.1 million for the fiscal year 2008.
"With our continuous efforts in expanding our sales and distribution channels as well as upcoming market launches for three additional products, we remain confident in meeting our 'make good' net income target of $13.1 million for fiscal 2008," said Dr. Zhongyi Liu, Chairman, CEO and President of Lotus Pharmaceuticals, Inc.
On February 26, 2008, Lotus raised $5 million in a private placement. As part of the terms of the transaction, the Company's founders delivered in the aggregate 7,500,000 shares of the Company's common stock owned by them (the "Escrow Shares") to an escrow account. Subject to Lotus achieving certain earnings targets in fiscal years 2007, 2008 and 2009, these Escrow Shares shall be returned to the Company's founders. In 2007, the Company exceeded the target net income of $8.5 million. The target for 2008 is 95% of $13.8 million in net income after eliminating the effect of non-cash charges associated with the private placement and adjusting for differences in the exchange rate between Chinese Renminbi and US dollars used in the Company's 2008 financial statements and an exchange rate of RMB 7.30 to USD 1.00. Additional information can be found in the Form 8-K filed on February 26, 2008 with the U.S. Securities and Exchange Commission in connection with the private placement transaction.
About Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. ("Lotus") controls and operates Liangfang
Pharmaceutical, Ltd. ("Liangfang") and Enze Jiashi Pharmaceutical, Ltd.
("Enze"), two pharmaceutical companies located in Beijing, China. Together,
Liangfang and Enze form the main enterprise (together, "L
|SOURCE Lotus Pharmaceuticals, Inc.|
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