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Global Pharm Announces the Closing of US$15 Million Redeemable Convertible Bonds Financing
Date:10/26/2011

business in Shandong province."

"The Chinese domestic consumption model is developing rapidly and will remain the driving force for much of China's continued growth in the coming years. After much in-depth research, we believe consolidation in the pharmaceutical sector in China is poised to take shape in the next 6 to 24 months, and we want to be ahead of the curve. We identified the Company, led by Mr. Yin, to be a strong contender to become a dominant player in the pharmaceutical sector in China. We want to add strategic values to the management to realize the vision to grow Global Pharm's business through robust organic growth as well as targeted acquisitions on a nationwide basis," commented Mr. Barry Lau, Managing Partner and Chief Investment Officer of Gen2 Partners. He continued, "The Company is poised to take advantage of pharmaceutical industry consolidation opportunities in the PRC, and is creating synergies among its TCM cultivation, processing and pharmaceutical distribution units. We are very excited to provide Global Pharm with this financial resource and looking forward to a cooperative relationship with the Company."

Please refer to the Company's Form 8-K filed with the Securities and Exchange Commission on September 23, 2011 and today for the summary of the terms of the Financing.

About Global Pharm

Global Pharm Holdings Group, Inc., a growing integrated pharmaceutical company, is engaged in the pharmaceutical distribution, Traditional Chinese Medicine (TCM) herb cultivation and herbal pieces processing business in China. The Company focuses on building regional distribution channels, as well as local capillary sales network with high-margin products portfolio. Currently, its sales network covers Shandong, Jilin, Anhui and Guangdong provinces. Global Pharm seeks to establish an integrated value chain in the pharmaceutical industry through strategic acquisitions within TCM production, pharmaceutical distribution and
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SOURCE Global Pharm Holdings Group, Inc.
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