This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China Cord Blood Corporation And Golden Meditech Holdings Limited Enter Into Convertible Note Financing To Further Expand Cord Blood Banking Services

HONG KONG, Sept. 18, 2012 /PRNewswire-FirstCall/ -- China Cord Blood Corporation (NYSE: CO) ("CCBC" or the "Company"), the first and largest cord blood banking operator in China and Golden Meditech Holdings Limited ("Golden Meditech", 801.HK; 910801.TW), a leading integrated healthcare enterprise in China announced that they entered into agreements under which Golden Meditech, is expected to invest $50 million into CCBC to support its further business expansion and to capitalize on China's fast-growing healthcare services industry.

The convertible note carries a 7% interest per annum and a total rate of return of 12% per annum. The convertible note holder can convert the convertible note into ordinary shares of the Company at a conversion price of $2.838.  The total ordinary shares issuable represents approximately 15.5% of the enlarged share capital of the Company. 

With the demand for cord blood banking services flourishing and the number of new subscribers continuing to rise, the additional capital will pave the way for CCBC to seize market opportunities and bring premium cord blood banking services to even wider public in China and any other untapped markets.  CCBC is actively pursuing its China expansion strategy by building new storage facilities in Guangdong and establishing storage facility to service the Zhejiang market.  The added capital infusion increases the Company's war chest to enable deeper and more rapid penetration into these regional markets, and be better prepared to pursue other opportunities as they arise.     

Upon completion of the transaction, Mr. Yuen Kam, will be appointed as Chairman of CCBC and Ms. Ting Zheng will continue her role as the Chief Executive Officer of CCBC.  Mr. Yuen Kam is currently the Chairman and Chief Executive Officer of Golden Meditech and has extensive experience in the healthcare industry of China.

"Golden Meditech has long been the largest shareholder of CCBC and currently holds 41.8% of CCBC.  Our investment demonstrates our strong confidence in the prospects of China's cord blood banking industry and CCBC's market leadership," said Mr. Kam.  "We believe in the potential embedded within CCBC.  In serving as the Chairman of CCBC, I am honored to work with an experienced management team.  With my support, I envision the CEO and her team will be able to broaden CCBC's reach so that more families can have the opportunities to protect their love ones through CCBC's premium healthcare services."

Ms. Ting Zheng, Chief Executive Officer of CCBC stated, "We are glad to receive such overwhelming and valuable support from our major shareholder who shares our vision and beliefs.  We believe that CCBC will create a brilliant future under Mr. Kam's leadership and extensive experience in the healthcare industry." 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs