Why China Jo-Jo Drugstores (CJJD) Stock Is Down 70%

China Jo-Jo Drugstores Holdings Inc CJJD shares are trading lower by 72.75% to $1.30 Tuesday morning after the company announced a $7 million registered direct offering.

What Else?

China Jo-Jo Drugstores says the company entered into a definitive agreement with an institutional investor for the issuance of 2,258,888 ordinary shares, at a purchase price of $3.10 per share.

See Also: Why Athersys Shares Are Falling During Tuesday's Session

The closing of the sale of the securities is expected to occur on or about April 20, subject to satisfaction of customary closing conditions.

Jo-Jo Drugstores intends to use the net proceeds from the offering for general corporate purposes and working capital.

According to data from Benzinga Pro, CJJD has a 52-week high of $9.65 and a 52-week low of $1.23.

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