AXM Pharma Announces Acquisition of Leading Chinese Research Institute
DIAMOND BAR, Calif.--(BUSINESS WIRE)--Feb 5, 2007 - AXM Pharma Inc. (OTC: AXMP) a manufacturer of proprietary and generic pharmaceutical and nutraceutical products for the Chinese and other Asian markets, announced today that its wholly-owned subsidiary AXM Shengyang entered into an Acquisition Restructure and Technology Transfer Agreement (the "Agreement") with Beijing Yuhuatang Biological Sci-Tech Development Co., Ltd. ("Yuhuatang"), a leading Chinese research institute. Pursuant to the Agreement, AXM will issue approximately 4.5 million shares of the Company's common stock and RMB 1 million to Yuhuatang in exchange for all the common stock and technology of Yuhuatang. Yuhuatang will become a wholly owned subsidiary of AXM. The Company believes that the Agreement will allow it to expand its product lines. The technology of Yuhuatang was granted innovative funds for Small and Medium Enterprises from State Science and Technology Ministry.Under the Agreement, AXM will acquire a broad portfolio of products including products in the areas of testosterone (a State-listed key new product) and testosterone undecanoate (a National Innovation Fund-supported product), which was granted innovative funds for Small and Medium Enterprises from State Science and Technology Ministry. These products contain Androstenedione, which is in such great demand in China, that the demand for the product significantly exceeds the supply. The Company believes it can produce these products at its GMP-certified 60,000 square meter facility and expects to produce and launch these products during the fourth quarter of 2007. The new facility will be constructed in compliance with both FDA and Chinese GMP requirements. Financing for the construction will come from Chinese investors under financial terms which are currently being negotiated. Products produced at this facility will be both exported and sold domestically The factory is capable of producing 30,000,000 tubes for ointment, 500,000,000 tablets and 250,000,000 capsules annually.
The Company also announced that it has received the first installment totaling 3 million RMB (approximately $380,000) of an investment from Warner Corp., a New York-based investment firm. The initial proceeds will be used for general corporate purposes, including legal and auditing services, as well as the initial start-up of new products. Recently, AXM engaged Paritz & Company, P.A. as its independent accountant to audit its financial statements.
About AXM Pharma, Inc.
AXM Pharma, Inc., through its wholly owned subsidiary, AXM Pharma Shenyang, Inc. ("AXM Shenyang"), is a manufacturer of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. AXM Shenyang is located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang has an operating history of approximately 10 years. For additional information on AXM Pharma Inc., please visit http://www.axmpharma.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities law, including the statements regarding the Company's opportunities for future growth. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, the performance of joint venture partners, obtaining regulatory approvals to market the Company's products, the uncertainties associated with distributing products in a developing country such as China, the availability of cash to meet near term requirements as well as other economic, competitive and technological factors involving the Company's operations, markets, services, products and prices. With respect to AXM, except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, AXM's extremely limited operating history, uncertainties related to the Company's access to additional capital, competition and dependence on key management.
Contact
CEOcast, Inc. for AXM Pharma
Daniel Schustack, 212-732-4300
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