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HAIKOU, China - China Pharma Holdings, Inc. (NYSE American: CPHI), a specialty pharmaceutical company, announced today that it has completed all redemptions of its Convertible Promissory Note with Streeterville Capital, LLC as of last Wednesday. The company views this as a significant step in reinforcing its financial structure and showcasing its commitment to prudent financial management. According to InvestingPro data, this development comes as the company faces challenging financial metrics, with an EBITDA of -$1.71M in the last twelve months and a stock price decline of over 68% year-to-date.
The Convertible Promissory Note, with a principal amount of $5,250,000, was initially issued on November 17, 2021. Through a series of amendments, including an extension of the maturity date to August 19, 2025, China Pharma has now settled its obligations, indicating a strong focus on maintaining investor trust and operational stability. InvestingPro analysis reveals the company operates with a current ratio of 0.79, suggesting ongoing liquidity challenges that make this debt settlement particularly significant. Subscribers to InvestingPro can access 8 additional key financial insights about CPHI's debt and liquidity position.
Ms. Zhilin Li, CEO and Chairwoman of China Pharma, expressed satisfaction with the completion of the redemptions, stating that it demonstrates the company's ongoing efforts to solidify its financial foundation. She acknowledged the support from partners and stockholders during this financial maneuver.
With the redemptions concluded, China Pharma aims to continue its growth trajectory and enhance shareholder value. The company remains dedicated to developing its product portfolios, particularly targeting prevalent and severe health conditions in China.
China Pharma Holdings specializes in creating, manufacturing, and marketing a variety of pharmaceutical products aimed at diseases with high incidence and mortality rates in China, such as cardiovascular, CNS, infectious, and digestive diseases. The company operates a cost-effective business model with GMP-certified product lines and an extensive distribution network across China. Recent InvestingPro data shows the company generated revenue of $5.54M in the last twelve months, though facing challenges with negative gross profit margins and a 28.76% year-over-year revenue decline.
The information in this article is based on a press release statement. China Pharma Holdings has cautioned readers that certain statements in the original press release are forward-looking and subject to risks and uncertainties that could cause actual results to differ from those projected.
In other recent news, China Pharma Holdings, Inc. has filed a prospectus supplement with the U.S. Securities and Exchange Commission for an at-the-market equity offering, which could potentially aggregate to $600,000. This move comes in the wake of the company's entry into a Securities Purchase Agreement (SPA) with an undisclosed investor. The investor, under the terms of the SPA, can purchase shares of China Pharma's common stock periodically until December 31, 2024, with the pricing of these shares tied to market conditions.
However, the sale of shares is subject to various factors, including market conditions, and there is no guarantee that any of the common stock will be sold. This offering is part of a shelf registration statement that became effective on February 6, 2024. Despite the company's cost-effective business model and broad distribution network across China, it has been facing significant financial challenges, as evidenced by a weak financial health score of 0.82 and negative EBITDA of $1.71M in the last twelve months.
InvestingPro data also reveals concerning metrics, including a 28.76% revenue decline and a current ratio of 0.79, indicating potential liquidity challenges. The company has issued a caution that this press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. Investors are urged to read the prospectus supplement for a more comprehensive understanding of the offering and the associated risks.
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