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YA Global invests up to USD10m in Lotus Pharmaceutical

Lotus Pharmaceutical has entered into a USD10m standby equity distribution agreement with YA Global Master SPV, a fund managed by Yorkville Advisors of New Jersey.

Yorkville’s Hong Kong office advised on the transaction.
Lotus engages in the production, trade and retail of pharmaceutical products in the People’s Republic of China.

It plans to use the funds for the group’s general corporate and working capital purposes.

Lotus currently sells 20 prescription drugs covered by the National Health Insurance Program in the PRC, four of which are self-produced. The company operates GMP certified facilities, with direct sales channels to 42 hospitals and a national sales network through ten regional centres in the PRC.
Liu Zhong Yi, chief executive officer and chairman of Lotus, says: “We are extremely pleased to welcome Yorkville as a long-term capital partner to Lotus. The partnership will assist our development into a leading player in the growing pharmaceutical market in China.”

The agreement allows Lotus, at its discretion, to draw down a total of USD10m of equity capital in tranches.

Anthony Chan, managing director and head of Asia at Yorkville HK, says: “We are pleased to become a capital partner to Lotus, which is an emerging leader in the high growth pharmaceutical sector in China. Lotus is based in Beijing and possesses an attractive portfolio of pharmaceutical products which it is licensed to produce and market through its extensive distribution network across China.”

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