China Aoxing Pharmaceutical Company Enters Agreement to Divest Non-Core Land Property
May 18 2009 - 7:00AM
Marketwired
China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG) ("China
Aoxing"), a pharmaceutical company specializing in research,
development, manufacturing and marketing of narcotic and
pain-management products, today announced that it has entered into
a definitive agreement to sell its non-core land property at 33
million RMB, or approximately $4.8 million, in cash. The sale is
expected to close, subject to regulatory review, by June 15, 2009.
China Aoxing will use proceeds from the sale for general corporate
purposes.
"Divesting the non-core land property is an important milestone
in our strategy to focus on core pharmaceutical business and to
strength our balance sheet by rationalizing non-essential assets
through a non-dilutive transaction to our shareholders. This sale
was carefully considered by the Board of Directors and based on a
number of business reasons," said Juan Yue Han, Chairman and the
CEO of China Aoxing, "A sharper strategic focus can facilitate
business growth and potential for achieving further operating
efficiencies, accelerating our timeline to profitability."
Under the terms of the divestiture agreement, the land property
to be divested occupies 18,350 square meters (or 197,518 square
foot, or 4.53 acres) located at the manufacuring facility of
Shijazhuang Lerentang Pharmaceutical Company, Ltd. ("LRT"), an
operational subsidiary of China Aoxing. The property becomes no
longer essential to Company operations as LRT business is fully
integrated into Hebei Aoxing. The transaction was conducted in a
publicized auction at Shijiazhuang City and the property was sold
to the highest joint bidders from Hebei Xinxing Geli Electronics
Marketing Company Ltd and Shijiazhuang City Xinyang Weiye Property
Company, Ltd., PRC companies.
This transaction is not associated with the land property of
Hebei Aoxing, the main campus of China Aoxing, which occupies
200,000 square meters (or 49 acres) and is sufficient to support
its business expansion in foreseeable future.
About China Aoxing Pharmaceutical Company, Inc.
China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG) is a
pharmaceutical company located in China specializing in research,
development, manufacturing and distribution of a variety of
narcotics and pain-management products. It has a strategic alliance
with American Oriental Bioengineering, Inc. (NYSE: AOB) to develop
and market various narcotic drugs in China. Headquartered in
Shijiazhuang City, the pharmaceutical capital of China, outside of
Beijing, China Aoxing has China's largest and the most advanced
manufacturing facility for highly regulated narcotic medicines,
addressing a very under-served and fast- growing market in China.
Its facility is one of the few GMP facilities licensed for
narcotics medicines. The Company is working closely with the
Chinese government and SFDA to assure the strictly regulated
availability to medical professionals of its narcotic drugs and
pain medicines throughout China.
Statements made in this press release are forward-looking and
are made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause actual results to differ materially
from those set forth in these statements. The economic,
competitive, governmental, technological and other risk factors
identified in the Company's filings with the Securities and
Exchange Commission, including the Form 10-KSB for the year ended
June 30, 2008, may cause actual results or events to differ
materially from those described in the forward looking statements
in this press release. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
because of new information, future events, or otherwise.
Contact: Wei Zhang Investor Relations China Aoxing
Pharmaceutical Company, Inc. Email: chinaaoxing@gmail.com
Telephone: 646 - 512 - 5662
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