China MEdicine Corporation (OTC Bulletin Board: CHME) ("China Medicine" or "the Company"), primarily a leading distributor and a developer of Western pharmaceuticaLS, traditional Chinese medicines ("TCM"), and other nutriceuticals today announced that it has entered into a Stock Subscription Agreement for an equity private placement (the "Subscription Agreement") with One Equity Partners ("OEP"), the GLobal private equity investment arm of JPMorgan Chase & Co.
China Medicine is OEP's first investment in Greater China and refleCTS the firm's commitment to back aspirational management teams to accelerate the growth of their businesses.
Subject to certain CLosing conditions, OEP has agreed to purchase 4,000,000 of the Company's common shares at $3.00 per share and 1,920,000 of the Company's redeemable convertible preferred shares at $30 per share, for an aggregate purchase price of $69.6 million. Each redeemable convertible preferred share is initially convertible into ten common shares. At closing, the Company will receive $12 million in proceeds while the remaining $57.6 million in proceeds will be placed in escrow until released to fund additional capital EXpenditures and acquisition projects.