New York, June 04, 2020 (GLOBE NEWSWIRE) -- BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”) today announced the closing of its previously announced sale of $4.45 million of a new series of senior secured convertible notes (the “Convertible Notes”) with an original issue discount of 19.85% and ranking senior to all outstanding and future indebtedness of the Company in a private placement to two institutional investors. Additional Convertible Notes in an aggregate original principal amount not to exceed $2,100,000 may also be issued to the institutional investors at a later date under certain circumstances. The Convertible Notes do not bear interest except upon the occurrence of an event of default.
The Convertible Notes are convertible into shares of the Company’s common stock at any time or times after the stockholder approval of the transaction is obtained, which is expected to take place at the end of July. The conversion price of the Convertible Notes is $2.59 less a 22% discount to the lowest volume weighted average price of the common stock of the Company in the prior 10 trading days before conversion, subject to a floor of $0.554 per share.
At the closing of the transaction on June 2, 2020, each institutional investor paid $1,750,000 in cash for a Convertible Note with a face amount of $2,225,000 and received a warrant to purchase 650,000 shares of common stock at an initial exercise price of $2.845. The placement agent for the Private Placement, FT Global Capital Inc., also received a warrant to purchase up to 171,845 shares of common stock at an initial exercise price of $2.845 per share, subject to increase based on the number of shares of common stock issued pursuant to the Convertible Notes.
"We are excited to have the two investors as valued partners as they share our confidence in the long-term growth of our company," said Mr. Tiewei Song, Chief Executive Officer and President of BOQI International Medical Inc. "This investment helps strengthen our financial position and provides the company with the resources to grow its business. As a consumer-centric and market-oriented company, we are more than ever committed to engaging our customers with a higher-quality, simpler and more affordable healthcare experience."
About BOQI International Medical Inc.
BOQI International Medical Inc. (formerly known as NF Energy Saving Corporation) (NASDAQ: BIMI) was founded in 2006. In February 2019, the Board of Directors of the company was reorganized following efforts led by Mr. Yongquan Bi, the company’s new Chairman, with a renewed focus on the health industry. The company is now transforming from a provider of integrated energy conservation solutions to a healthcare products provider. BOQI International Medical Inc. offers a broad range of healthcare products and related services.
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IR Contact:
Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: BIMI@dgipl.com