Jiangbo Pharmaceuticals, Inc. (Nasdaq: JGBO) ("Jiangbo Pharmaceuticals" or the "Company"), a pharmaceutical company with its principal operations in the People's Republic of China, today announced that it has reached a settlement with the holder of its November 2007 Debenture and with the holders of its May 2008 Notes under which the Company has agreed to issue to such holders a total of 886,277 shares of its common stock as a payment for all delinquent interest and associated penalties with respect to its November 2007 Debenture and May 2008 Notes. As part of the settlement, the holders of its November 2007 Debenture and May 2008 Notes have agreed to waive events of default that occurred as a result of the Company's failure to make timely payments on interest due on November 30, 2009, on May 30, 2010 and on November 30, 2010. Additionally, the holder of its November 2007 Debenture has agreed to extend the due date on the November 2007 Debenture to February 28, 2011.
"Consummation of this settlement brings the Company current on its November 2007 Debenture and May 2008 Notes. We thank our debenture and note holders for their continued support of Jiangbo Pharmaceuticals as we execute on our growth strategy in 2011," said Mr. Linxian Jin, the Company's Chief Executive Officer.
Jiangbo Pharmaceuticals, Inc.