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| Accelerate Growth Momentum of Generic Drugs and Proprietary Medicines Business |
HONG KONG, Sept 6, 2017 - (ACN Newswire) - Jacobson Pharma Corporation Limited ("Jacobson Pharma" or the "Group"; Stock Code: 2633), a leading company engaged in the research, development, production, marketing and sale of generic drugs and proprietary medicines, has proposed to issue Convertible Notes under general mandate, in an aggregate principal amount of HK$500 million due in 2020, to two subscribers namely Dragons 615 Limited ("Dragons", a wholly-owned limited liability company of DCP China Credit Fund I, L.P. ("DCP Fund")) and HH InRe JP, Ltd. ("HH JP", an indirectly wholly-owned limited liability company of Hillhouse InRe Fund, L.P.). Dragons and HH JP have agreed to subscribe for the Convertible Notes in a principal amount of HK$280 million and HK$220 million, respectively. Jefferies is the sole placement agent in the proposed issue of the Convertible Notes.
The Convertible Notes are convertible into shares at an initial Conversion Price of HK$2.50 per share, representing a premium of approximately 23.76% to the Closing Price of HK$2.02 traded on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 5 September 2017. Assuming full conversion, the Convertible Notes will be convertible into 200,000,000 Conversion Shares, representing approximately 9.92% of the enlarged share capital of the Company. The Notes will bear interest at a rate of 3.5% per annum.
The net proceeds of HK$490 million from the subscriptions are intended for a) funding potential acquisitions or forming strategic alliances in the Asia Pacific region with a view to expanding the Group's geographical reach and market presence for its generic drug and proprietary medicine businesses; and b) supporting in-licensing and direct investment on technologically-oriented bio-pharmaceutical projects to contemplate an entry into the innovation-driven therapeutic areas.
Dragons is wholly-owned by DCP Fund, which in turn is funded by renowned international institutional investors and a Singapore sovereign fund which is a wholly-owned subsidiary of Temasek Holdings. The general partner of DCP Fund is Dignari Capital Partners GP Limited and the sole investment advisor of DCP Fund is Dignari Capital Partners (HK) Limited.
HH JP is indirectly wholly-owned by Hillhouse InRe Fund, L.P. The general partner of Hillhouse InRe Fund, L.P. is Hillhouse InRe Fund GP, Ltd. and its sole investment manager is Hillhouse Capital Management, Ltd. ("Hillhouse Capital"). Hillhouse Capital is a global firm of investment professionals and operating executives founded in 2005. Together with its group members, Hillhouse currently manages assets of US$30 billion on behalf of institutional clients. The issue of the Convertible Notes will not only strengthen the capital base of Jacobson Pharma, but also boost its cash position, enabling it to gather stronger growth momentum.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma, said, "We are pleased to have gained the trust and support of the two reputable funds. We see it as a vote of confidence in our proven business strategies and the growth prospects of Jacobson Pharma as a whole. Being placed in a sound financial position, we will seek to accelerate our growth momentum by contemplating an expansion of our business portfolio through strategic acquisitions or alliances both vertically and horizontally, and also pursuing product differentiation through carefully-orchestrated R&D activities."
Jacobson Pharma has been building a scalable proprietary medicine platform through strategic acquisitions since its listing in September 2016. Such endeavours have presented the Group with a steadily growing revenue stream and enhanced its geographical reach to key strategic markets in Asia Pacific. As a result of the acquisitions made during FY2017, the Group's proprietary medicine portfolio now comprises popular brands including Po Chai Pills, Ho Chai Kung Tji Thung San, Tong Tai Chung Woodlok Oil, Flying Eagle Woodlok Oil, Saplingtan, Shiling Oil and Col-gan Tablet, all of which are well-recognised by consumers.
About Jacobson Pharma Corporation Limited (Stock Code: 2633)
Jacobson Pharma is the largest generic drug company in Hong Kong with over 30% share of the total generic drug market for each year since 2012. The Group's proprietary medicines, notably being Po Chai Pills, Tong Tai Chung Woodlok Oil, Ho Chai Kung Tji Thung San, Contractubex Scar Gel Doan's Ointment, Flying Eagle Wood Lok Medicated Oil, Saplingtan, Shiling Oil and Col-gan Tablet have been widely recognized by the market. Jacobson Pharma has been a constituent stock of MSCI Hong Kong Micro Cap Index since 1 June 2017. For more details about Jacobson Pharma, please visit the Group's website: http://www.jacobsonpharma.com
For media enquiries, please contact:
Strategic Financial Relations Limited
Vicky Lee Tel: +852 2864 4834 Email: vicky.lee@sprg.com.hk
Angela Ng Tel: +852 2864 4855 Email: angela.ng@sprg.com.hk
Angel Li Tel: +852 2864 4859 Email: angelok.li@sprg.com.hk
Topic: Press release summary
Source: Jacobson Pharma Corporation Limited
Sectors: Daily Finance, Healthcare & Pharm
https://www.acnnewswire.com
From the Asia Corporate News Network
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