China Pharma Holdings Inc. Enters into Securities Purchase Agreement for Offering Initiating an At-The-Market Equity Financing

China Pharma Holdings Inc. (NYSE American: CPHI) has recently announced that on December 12, 2024, the company entered into a securities purchase agreement (SPA) with an institutional investor for an at-the-market offering. This agreement allows the investor to acquire, at its discretion, shares of China Pharma’s common stock, par value $0.001 per share, under specific terms.

According to the SPA, the investor has the option to purchase shares of common stock within the commitment period ranging from December 12, 2024, to December 31, 2024, with an aggregate offering price of up to $600,000. The offering will be conducted under the Company’s shelf Registration Statement on Form S-3, filed with the Securities and Exchange Commission (SEC) on January 12, 2024, and declared effective on February 14, 2024.

The purchase price for the shares will be determined based on the at-the-market price methodology. The investor may acquire shares through one or more closings at a price equal to the lower of the closing price the day before the purchase notice or the five-day average closing prices reported by Bloomberg or the NYSE American Market. The per share price will not fall below $0.15, except for repricing adjustments permitted under the SPA.

Additionally, China Pharma has provided the investor with “most favored nation” treatment, ensuring that the investor will benefit from more favorable terms if the company enters into any financing or similar agreements within thirty days of signing the SPA. Any more favorable terms will be retrospectively applied to closed and future purchases under the SPA.

The actual proceeds to China Pharma will depend on the number of shares sold and their respective prices. Given that there is no minimum offering amount required, the total offering amount and proceeds to the company are not currently determinable.

The offering under the SPA is set to conclude on the earliest occurrence of the investor purchasing common stock worth $600,000, the Registration Statement’s expiration, or December 31, 2024. The detailed terms of the SPA are available in the filed document, and the opinion of Flangas Law Group relating to the legality of the issuance and sale of the shares is attached as an exhibit to the current report on Form 8-K.

China Pharma Holdings Inc. has emphasized that the Current Report on Form 8-K does not serve as an offer to sell securities or a solicitation to buy. Any sale of securities will comply with relevant securities laws, and the Company will not proceed with any illegal offerings.

For more in-depth financial statements and full descriptions, interested parties can refer to the company’s recent SEC filings. The announcement regarding the entry into the At-the-Market Equity Financing can be accessed through the official channels as specified by China Pharma Holdings Inc.END

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read China Pharma’s 8K filing here.

China Pharma Company Profile

China Pharma Holdings, Inc develops, manufactures, and markets generic and branded pharmaceutical, and biochemical products to hospitals and private retailers in the People’s Republic of China. The company provides products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions.