China Biologic Products Holdings, Inc.

Situational Overview

HFG was approached by China Biological Products Holdings, Inc. as it desired to raise capital and become publicly listed on a US stock exchange. HFG worked with the client to execute its APO® model whereby capital is raised simultaneously with the going public transaction.

Transaction Highlights

  • Client utilized the APO process to raise $11.2 Million in gross proceeds from a private placement 
  • At the same time, completed a going public transaction by merging with a corporation controlled by HFG 
  • Client began trading at approx. $3.00/share 
  • The founders of CBPO only suffered dilution of approximately 15% as a result of the APO.

About The Client

Founded in 2002, China Biologic Products Holdings, Inc. (NASDAQ: CBPO), is a leading fully integrated plasma-based bio-pharmaceutical company in China. China Biologic’s core capabilities include plasma collection, and the manufacturing and commercialization of human plasma-based bio-pharmaceutical products. These products are used as critical therapies during medical emergencies and for the prevention and treatment of life-threatening diseases and immune-deficiency related diseases. Headquartered in Beijing, the company manufactures products through their facilities in Guizhou Province, Shandong Province, and Shaanxi Province. China Biologic renounced it public listing and completed a Going Private Transaction in April of 2021.

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Outcome

At the time of the transaction the client had revenues of approximately $32 Million. Today CBPO has revenues of approximately $500 Million and their stock trades at approximately $116 per share. By utilizing the APO model the client received the growth capital it needed while its founders suffered only minimal dilution. In April 2021, CPBO completed its Going Private Transaction, with unaffiliated shareholders receiving $120 per share.