HANGZHOU - China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD), a prominent player in pharmaceutical retail and distribution, as well as healthcare services in China, has declared a registered direct offering of ordinary shares. The company has finalized agreements to sell approximately 1.61 million ordinary shares at $1.70 each, aiming to raise about $2.74 million in gross proceeds.
The transaction is scheduled to close around May 17, 2024, contingent on the customary closing conditions being met. Jo-Jo Drugstores plans to allocate the net proceeds from the offering towards general corporate purposes and working capital enhancement.
The offering is being made under an effective shelf registration statement, previously filed with and sanctioned by the U.S. Securities and Exchange Commission (SEC) on December 19, 2022. The shares are offered through a prospectus and a supplementary prospectus, forming part of the registration statement. Interested parties may access these documents on the SEC's website upon their filing.
China Jo-Jo Drugstores operates an online pharmacy and a network of retail drugstores with on-site licensed doctors providing consultations and treatments. Additionally, the company acts as a wholesale distributor of a range of healthcare products.
The information is based on a press release statement from China Jo-Jo Drugstores, Inc.
InvestingPro Insights
China Jo-Jo Drugstores, Inc.'s (NASDAQ:CJJD) recent announcement of a registered direct offering to raise capital highlights the company's efforts to bolster its financial position. In light of this development, the following InvestingPro Insights provide a snapshot of the company's current financial health and stock performance:
InvestingPro Data reveals that China Jo-Jo Drugstores has a market capitalization of $5.94 million, indicating a relatively small size within the pharmaceutical retail market. The company's Price/Book ratio, as of the last twelve months leading up to Q2 2024, stands at 0.31, which may suggest that the stock is trading at a low valuation relative to its book value. Additionally, the company has experienced a one-week price total return of 17.3%, reflecting a significant return over the short term.
An InvestingPro Tip points to the company's substantial debt burden, which could present challenges in making interest payments. This is particularly relevant considering the company's efforts to raise capital through the sale of ordinary shares. Moreover, the company's stock is known to trade with high price volatility, which investors should consider when evaluating the risk associated with investing in CJJD.
For those seeking a deeper analysis, InvestingPro offers additional insights on China Jo-Jo Drugstores, including more InvestingPro Tips that can further inform investment decisions. To explore these tips and gain a comprehensive understanding of CJJD's financials and stock performance, visit https://www.investing.com/pro/CJJD. Remember, you can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a total of 16 InvestingPro Tips for CJJD.
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