Dragon Pharmaceuticals Inc. announced today that it will proceed with a private placement of up to 4,000,000 units at US$2.00 per unit for total gross proceeds of up to US$8.0 million. Each unit consists of one Common Share in the Company and one Warrant to purchase an additional one-half Common Share at US$2.00 for a period of two years. A finder’s fee will be payable in conjunction with this financing.
The proceeds of this financing will be used to provide working capital and to expand the production capacity of the Company’s EPO manufacturing facility in Nanjing, China. This additional capacity will be required to meet anticipated product orders resulting from registrations of the Company’s lead product, EPO, in a number of international territories. The proceeds will also be used to fund the development of Dragon’s follow-on generic products, which include TPO, G-CSF and Insulin.
About Dragon Pharmaceuticals Inc.
Dragon Pharmaceuticals Inc. is an international biopharmaceutical corporation engaged in the discovery, development and commercialization of genetically engineered human proteins for therapeutic use. Based on its proprietary protein expression technology, Dragon has become one of the world’s lowest cost producers of Erythropoietin (EPO) – a breakthrough drug that has revolutionized the treatment of anemia. Dragon is now applying its platform technology to the development of other generic therapeutic proteins as well as to novel protein drugs with worldwide patent potential.
