Biostar Announces Execution of Agreement for $4.1 Million Registered Direct Offering of Shares of Common Stock and Warrants

 Biostar Announces Execution of Agreement for $4.1 Million Registered Direct
               Offering of Shares of Common Stock and Warrants

PR Newswire

XIANYANG, China, March 10, 2014

XIANYANG, China, March 10, 2014 /PRNewsiwre/ --Biostar Pharmaceuticals, Inc.
(NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and
marketer of pharmaceutical and health supplement products in China for a
variety of diseases and conditions, announced today that it entered into a
securities purchase agreement (the "Securities Purchase Agreement") with
certain institutional investors for the sale of 1,650,000 shares of common
stock in a registered direct offering at the price of $2.49 per share. In
addition, warrants to purchase 660,000 shares of common stock in the aggregate
will be issued to the investors. The warrants will be exercisable immediately
upon issuance at an exercise price of $3.23 per share and expire three years
from the date of issuance. Gross proceeds of the offering, before deducting
placement agent fees and other estimated offering expenses payable by the
Company, are expected to be approximately $4.1million. The net proceeds from
this offering will be used for working capital and other general corporate
purposes.

The completion of the offering will occur on or before March 13, 2014. Moody
Capital Solutions, Inc. and Axiom Capital Management, Inc. served as the
placement agents for the offering.

The securities are being offered through a prospectus supplement pursuant to
the Company's effective shelf registration statement and base prospectus. The
shelf registration statement relating to these securities was declared
effective by the Securities and Exchange Commission on January 3, 2014. A
prospectus supplement related to the offering will be filed with the
Securities and Exchange Commission.

This press release does not constitute an offer to sell or the solicitation of
an offer to buy, and these securities cannot be sold in any state in which
this offer, solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state. Any offer will be
made only by means of a prospectus, including a prospectus supplement, forming
a part of the effective registration statement.

Copies of the prospectus supplement and accompanying base prospectus relating
to this offering may be obtained at the SEC's website at http://www.sec.govor
directly from the company by contacting the Company at:

For more information contact:

Biostar Pharmaceuticals, Inc.
Ally Gong
Tel: +86-29-3368-6638
Email: office@aoxing-group.com

About Biostar Pharmaceuticals, Inc.

Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary and
controlled affiliate in China, develops, manufactures and markets
pharmaceutical and health supplement products for a variety of diseases and
conditions. The Company's most popular product is its Xin Aoxing Oleanolic
Acid Capsule, an over-the- counter medicine for chronic Hepatitis B, a disease
affecting approximately 10% of the Chinese population.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release are forward-looking statements that
involve a number of risks and uncertainties. Such forward-looking statements
include statements about the completion of the public offering of securities
described herein. Actual events or results may differ materially from the
Company's expectations. Factors that could cause actual results to differ
materially from those stated or implied by the Company's forward-looking
statements are disclosed in its filings with the Securities and Exchange
Commission. These forward-looking statements represent the Company's judgment
as of the time of this release. The Company disclaims any intent or obligation
to update these forward-looking statements, other than as may be required
under applicable law.

SOURCE Biostar Pharmaceuticals, Inc.
 
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