CHANGCHUN, China and LOS ANGELES, May 26 /PRNewswire-Asia/ -- China Yongxin Pharmaceuticals Inc. (OTC Bulletin Board: CYXND) ("the Company"), one of the leading health products distribution and retail sales companies in China, today announced that the Company has filed a Certificate of Amendment to its Articles of Incorporation with the State of Delaware's Secretary of State ("Certificate of Amendment") to effect a reverse stock split with a ratio of 1-for-12, whereby each twelve (12) issued and outstanding shares of the common stock of the Company, par value $0.001 per share ("Common Stock") will be combined into one (1) share of Common Stock ("Reverse Split") with an effective date of May 24, 2010. As described more fully in the Definitive Information Statement filed by the Company with the Securities and Exchange Commission ("SEC") on February 22, 2010, a reverse split of the common stock, with a ratio within a range of 1-for-10 and 1-for-15 (the "Reverse Split Range") and with the exact ratio within the Reverse Split Range to be determined by the Company's Board of Directors (the "Board"), was adopted and approved by written consent of the board of directors and the requisite shareholders on February 8, 2010. On April 28, 2010, the Board adopted and approved a 1-for-12 reverse split ratio within the Reverse Split Range.
Effective May 26, 2010, the Company's common stock commenced trading under a new OTC Bulletin Board trading symbol, "CYXND". The new trading symbol was assigned by Financial Industry Regulatory Authority ("FINRA") in connection with the approval of the Reverse Split. The Company's trading symbol will revert to "CYXN" within 20 business days. The Company's common stock, on a split-adjusted basis, has a new CUSIP number of 16946Y 207. Following the Reverse Split, the Company has approximately 5,269,952 shares of Common Stock issued and outstanding.
The Reverse Split was effectuated simultaneously for all of the Company's outstanding common stock and the exchange ratio is the same for all shares of outstanding common stock. The Reverse Split will affect all of the Company's stockholders uniformly and will not affect any stockholder's relative percentage ownership interests in the Company, except to the extent that the Reverse Split results in any of the stockholders receiving a fractional share. Stockholders and holders of options and warrants holding fractional shares will have their shares rounded up to the nearest whole number. Common stock issued pursuant to the Reverse Split will remain fully paid and non-assessable.
Mr. Yongxin Liu, Chairman and Chief Executive Officer of the Company commented, "As we continue to position the Company to be one of China's leaders in health care sales and distribution, it will be important to have the appropriate capital structure and investor base to further that growth. The Reverse Split, which is one of the necessary criteria for listing on NASDAQ, is part of our continuing investor relations efforts to attract institutional investors to our Company."
For further information regarding the Reverse Split, please refer to the Company's Current Report on Form 8-K filed with the SEC on May 25, 2010.
About China Yongxin Pharmaceuticals Inc.
Founded in 1993, China Yongxin Pharmaceuticals Inc. is one of the leading retailers and distributors of pharmaceuticals, medical equipment, other medical-related products, health products including nutritional and dietary supplements, and cosmetics in Northeastern China. The Company's retail operations began in 2004, and in 2005, it gained franchise rights from one of the world's largest drug chains for China's Jilin Province. The Company had become one of the fastest growing drug retailers in China through its retail chain of 99 drug outlets as well as its wholesale distribution in Northeastern China. For more information about China Yongxin Pharmaceuticals Inc., please visit http://www.yongxinchina.com .
Forward Looking Statements
This news release contains certain "forward-looking statements." Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and many of which are beyond the Company's control. The forward-looking statements are also identified through the use of words "believe," enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict" "probable," "potential," "possible," "should," "continue," "project", "expect" and other words of similar meaning. Actual results could differ materially from these forward-looking statements as a result of a number of risk factors detailed in the Company's periodic reports filed with the SEC. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved. China Yongxin Pharmaceuticals Inc. does not assume any duty to publicly update or revise the material contained herein.
For more information, please contact: CORPORATE China Yongxin Pharmaceuticals Inc. Sam Liu, COO Tel: +1-626-581-9098 Email: email@example.com INVESTOR RELATIONS Strategic Growth International, Inc. Richard Cooper / Linda Ni Tel: +1-212-838-1444 Email: firstname.lastname@example.org ; email@example.com
|SOURCE China Yongxin Pharmaceuticals Inc.|
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