BEIJING, Dec. 6, 2010 /PRNewswire-Asia-FirstCall/ -- China
Medical Technologies, Inc. (the "Company") (Nasdaq: CMED), a
leading China-based advanced
in-vitro diagnostic ("IVD") company, today announced that it has
closed the private offering of US$150
million in aggregate principal amount of convertible senior
notes due 2016 including an additional US$25
million principal amount of the notes to cover
over-allotments. The notes were sold to qualified
institutional buyers pursuant to Rule 144A under the Securities Act
of 1933, as amended (the "Securities Act"). The Company has used a
large portion of the net proceeds of the offering to repurchase
US$105.9 million aggregate principal
amount of its outstanding convertible notes due 2011 through
privately negotiated transactions, and has used approximately
US$10 million to pay for expenses
associated with the capped call transaction described below.
The Company intends to use the remaining net proceeds from
the offering to repurchase, from time to time, its outstanding
convertible notes and for general corporate purposes.
In connection with the offering, the Company has entered into a
capped call transaction relating to US$100
million in principal amount of the notes with an affiliate
of the initial purchaser. The Company does not expect to
enter into additional capped call transactions in connection with
this offering. The capped call transaction is expected
generally to reduce the potential dilution of the Company's
American Depositary Shares ("ADSs") upon a conversion of notes in
the event that the market value per ADS of the Company, as measured
under the terms of the capped call transaction, is greater than the
strike price of the capped call transaction (which corresponds to
the initial conversion price of the notes and is subject to certain
adjustments similar to those contained in the notes). The capped
call transaction has a cap price equal to approximately
US$17.15 (50% above the closing sale
price of the Company's ADSs on the Nasdaq Global Select Market on
November 30, 2010).
"The principal amount of the remaining outstanding convertible
notes due 2011 is US$29.1 million and
the outstanding convertible notes due 2013 is US$248 million," commented Mr. Sam Tsang, Chief Financial Officer of the
Company. "We believe that we have addressed the refinancing concern
on our outstanding convertible notes due 2011 and 2013 by this
offering together with our cash on hand, expected cash flows to be
generated from our operations over the next 3 years and credit
facilities to be provided by banks."
The notes and any ADSs issuable upon conversion of the notes,
including the ordinary shares represented by such ADSs, will not be
and have not been registered under the Securities Act, or any state
securities law, and may not be offered or sold in the United States or to any U.S. persons
absent registration under the Securities Act, or pursuant to an
applicable exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and applicable
state securities laws.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the notes or any ADSs issuable upon
conversion of the notes, nor shall there be any offer, solicitation
or sale of any notes or any ADSs issuable upon conversion of the
notes in any jurisdiction in which such offer, solicitation or sale
would be unlawful.
About China Medical Technologies, Inc.
China Medical Technologies, Inc. is a leading China-based advanced IVD company using
molecular diagnostic technologies including Fluorescent in situ
Hybridization (FISH) and Surface Plasmon Resonance (SPR) and an
immunodiagnostic technology, Enhanced Chemiluminescence Immunoassay
(ECLIA), to develop, manufacture and distribute diagnostic products
used for the detection of various cancers, diseases and disorders
as well as companion diagnostic tests for targeted cancer drugs.
The Company generates all of its revenues in China through the sale of diagnostic
consumables including FISH probes, SPR-based DNA chips and ECLIA
reagent kits to hospitals which are recurring users of the
consumables for their patients. The Company sells FISH probes and
SPR chips to large hospitals through its direct sales force and
ECLIA reagent kits to small and mid-size hospitals through
distributors.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. Such statements involve certain risks and uncertainties
that could cause actual results to differ materially from those in
the forward-looking statements. Further information regarding these
and other risks is included in the Company's filings with the U.S.
Securities and Exchange Commission, including its annual report on
Form 20-F. The Company does not undertake any obligation to update
any forward-looking statement as a result of new information,
future events or otherwise, except as required under applicable
law.
Contact
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Sam Tsang and
Winnie
Yam
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Tel: 852-2511-9808
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Email:
IR@chinameditech.com
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SOURCE China Medical Technologies, Inc.