Client

BCT operates in manufacturing, wholesale and retailing distribution of pharmaceutical products in the province of Guangxi, China. The Company was established in 1986 and operates the largest regional wholesale network and a large number of local retail outlets. The company has a strong market position in treatments for hepatitis, anti-inflammation, antibacterial, cancer, and cardio-vascular disease. BCT was on a high growth trajectory and required financing to free up working capital for growth through acquisitions.

Solution

The MDG team analyzed BCT's strategic market position and capital requirements. MDG worked closely with the company directors to identify the most appropriate financing strategy. MDG considered several alternative funding strategies in private equity markets and concluded that a reverse merger would provide the most favorable circumstances. The MDG Team performed due diligence on BCT's capital structure and growth strategy in order to facilitate the company's introduction into the US market.

Result

The MDG Team assessed the benefits and risks associated with both the single investor and broad-based PIPE options. We subsequently furnished a comprehensive review of the PIPE market and the most relevant PIPE transactions for determining competitive transaction terms. MDG delivered extensive analysis and transaction insight to BCT, eventually recommending that the company undertake a widely-marketed, broad-based PIPE transaction. MDG Partners assisted BCT in reaching a wide range of institutional investors.

MDG Partners led the financing, and assisted BCT in raising $8.9 million.




Company: BCT
Financial service: PIPE Financing
Amount raised: $8,939,060
Date: January, 2010

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